CARGO ROLLING STOCK MODERNISATION

Promoter – Financial Intermediary

PKP CARGO SA

Location

• Poland

Description

PKP Cargo, the state-owned Polish railway cargo operator, is buying 1000 new wagons and locomotives and carrying out an acoustic modernisation of the existing fleet.

Objectives

The project will increase the quality of the freight transport services provided by the Promoter, and will thereby promote sustainable transport solutions in line with EU objectives. Furthermore, the rolling stock will provide services predominantly to a Convergence Region, and thereby facilitate regional development. The project is therefore eligible under Article 309 point (a) projects for developing less-developed regions and point (c) common interest. The project is consistent with the EIB's transport lending policy (2011).

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 200 million

Total cost (Approximate amount)

EUR 412 million

Environmental aspects

The investments proposed under the project do not fall under either Annex I or Annex II of the Environmental Impact Assessment Directive 2014/52/EU amending Directive 2011/92/EU, as manufacturing and use of rail rolling stock is not included in either list. The need of EIA and/or assessment according to the Habitats Directive for associated facilities (e.g. maintenance workshops or depots) will be analysed during the appraisal. All else equal, the project is expected to have a positive environmental impact by helping the railways to maintain modal share in key sections of the cargo market that are most appropriately met by rail. EIB assessment of arrangements for the scrapping of dismissed rolling stock will be undertaken as a part of the due diligence process.

Procurement

The Promoter is a public undertaking operating in the transport sector but is not subject to the EU Procurement Directives for the following reasons: (i) it is not an entity created for the special purpose of satisfying general needs, rather it pursues objectives of an industrial or commercial nature; (ii) its activities are not subsidised by bodies governed by public law; (iii) its activities do not relate to the provision or operation of networks providing a service to the public; and (iv) it operates in a liberalised market.

Status

Signed - 7/05/2020