DIVACA-KOPER SECOND RAIL TRACK

Promoter – Financial Intermediary

REPUBLIC OF SLOVENIA

Location

• Slovenia

Description

Construction of 27 km of rail track on a new alignment to increase rail capacity between the port of Koper and the rail junction in Divaca.

Additionality and Impact

The project concerns the construction of a new 27 km single track railway line between Divaca and the port of Koper to add capacity to the existing single track which can no longer accommodate anticipated demand.

The project is expected to support the shift of traffic to more sustainable transport modes and to reduce related negative transport externalities, thus addressing important market failures. The positive external effects of the project are expected to include reduction of pollution, global emissions, traffic accidents and road congestion. By focusing the investment on a line that is part of the Core Corridors of the Trans European Network for Transport, coordination failures are addressed. The project is fully aligned with EU transport policy and the Green Agenda as well as the country's national strategy. The project contributes to several Sustainable Development Goals.

The project will generate operating cost savings, road safety and environmental benefits. The project will improve the attractiveness of the port of Koper.

The EIB loan will provide favourable financing terms and conditions - complemented with financing from the Connecting Europe Facility and Cohesion Fund which was also facilitated by the EIB involvement in project preparation (via JASPERS).

Objectives

The project forms a part of the Baltic-Adriatic and the Mediterranean core TEN-T corridors. It is intended to contribute to increasing rail modal share and, thereby, enhance sustainable transport and contribute to reduction of noise, pollution and greenhouse gas emissions and therefore to climate change mitigation, in line with EU objectives. The project would therefore be eligible under Article 309 point (c) common interest. Appropriateness of the project to meet the intended objectives, and consequently its eligibility, will be analysed during the appraisal.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 250 million

Total cost (Approximate amount)

EUR 1240 million

Environmental aspects

The project is included in Annex I of Directive 2011/92/EU (as amended by Directive 2014/52/EU). An environmental impact assessment was carried out and the project has received an environmental consent. This will be further analysed during the appraisal. Any potential significant impacts on protected areas and the need of an appropriate assessment in accordance with the Habitants Directive 92/43/EEC will also be analysed.

Procurement

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been and will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 8/12/2023