BAI - MONT ST-MICHEL II FINANCING

Promoter – Financial Intermediary

Brittany Ferries Group

Location

• France

Description

The project involves the construction of a dual-fuelled passenger/vehicle ferry (which utilises either liquefied natural gas (LNG) or normal marine fuel oils) for the promoter's fleet. It will be constructed and operated to comply with EU & International Maritime Organization (IMO) specifications and regulations and operate under an EU flag. The vessel will be constructed to EU environmental standards and certified for operations within the EU's emission control areas. The ship is scheduled for operations on the promoter's channel route between the UK (Portsmouth) and France (Caen-Ouistreham).

Objectives

Promotion of sustainable maritime transport

Comments

This is the first project to be approved for financing under the Bank's Green Shipping Guarantee programme and under the framework agreement signed with Société Générale. It will be structured as a funded risk participation between EIB and Société Générale. The programme benefits from the combined support of the Connecting Europe Facility (CEF) and the European Fund for Strategic Investments (EFSI).

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 50 million

Total cost (Approximate amount)

EUR 178 million

Environmental aspects

The project will contribute to a significant improvement in the environmental performance of the promoter's fleet. The project vessel will be fitted with LNG marine engines and, as such, will significantly reduce the emission of air pollutants including CO2. In addition, the project will improve service quality and increase freight and passenger capacity on the existing promoter's routes in the channel area. Therefore, the project contributes to sustainable transport and climate change mitigation, in line with the Bank's Transport Lending Policy as well as EU and EIB objectives on climate action.

Procurement

The promoter is a private company not operating in the utilities sector, and is thus not covered by EU directives on procurement. The promoter has conducted its procurement processes via a number of well-established international ship brokers. Procurement was completed through a negotiated procedure between the ship-owner and a number of European yards. Under these conditions, the procurement procedures followed by the promoter are suitable for the project and satisfactory for the EIB.

Status

Signed - 22/09/2017