METRO DE MADRID ROLLING STOCK

Promoter – Financial Intermediary

METRO DE MADRID SA

Location

• Spain

Description

The project consists of the acquisition of 80 new trainsets: 40 of them will be narrow-gauge and all of them will be used in Madrid Metro Line 1. The other 40 new trains to be purchased will be wide-gauge trainsets, 33 to replace existing units of different ages, and another 7 new trainsets to cope with the future increase of capacity of the Madrid Metro network due to the latest extensions of the metro lines.

Additionality and Impact

The Project aims at increasing the overall quality of the public transport service through the renewal of end-of-life metro trainsets. The Project is expected to reduce maintenance costs for the metro rolling stock while increasing the availability and reliability of public transport services. The Project is also expected to generate positive externalities for the city's residents in terms of supporting accessibility to services and employment by providing a more efficient and affordable alternative for urban mobility needs. 

EIB's participation will provide a financial benefit to Metro de Madrid as it allows distributing the cost of financing in the long term with up to 30 years tenor loan, resulting in a manageable annual debt service amount. The EIB will include flexible drawdown terms and conditions adjusted to the investment horizon of the Project, which are highly valued by public promoters and a key differentiating feature of EIB's financing. The EIB loan could have a signalling effect, facilitating additional financing from complementary sources, which will reduce the funding uncertainly for Metro de Madrid.

Objectives

The aim is to increase the overall quality of the public transport service and allow - in the longer term - an increase in the capacity of the metro network to cope with an expected demand growth. It will also reduce the operating costs of the metro system, mainly the maintenance costs of the rolling stock and increase the quality of the public transport services in terms of availability and reliability.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 470 million

Total cost (Approximate amount)

EUR 1028 million

Environmental aspects

The manufacturing of the new trains will take place in the factories of the manufacturer and it falls outside the scope of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by the EIA Directive2014/52/EU. Therefore, no EIA will be required for the metro rolling stock. Due to the nature of this project, no impact on any Natura 2000 areas is anticipated. The project is expected to have a positive environmental impact by helping the public transport to increase and/or maintain modal share. Furthermore, the project should contribute to reducing the GHG emissions and noise. The promoter needs to confirm that the old rolling stock will be disposed of or decommissioned in line with applicable EU legislation and best practice. The requirements of social standards will be verified during appraisal. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation, and pollution prevention and control.

Procurement

The promoter has to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation: Directives 2014/24/EU and 2014/25/EU, where applicable, as well as Directives 92/13/EEC or 89/665/EEC, as interpreted by the Court of Justice of the EU, with publication notices in the EU official Journal, as and where required.

Status

Signed - 30/11/2023