METRO DE MADRID LINE 11 EXTENSION

Promoter – Financial Intermediary

COMUNIDAD DE MADRID

Location

• Spain

Description

The project consists of seven kilometres of new underground metro, which constitutes the future Madrid Metro line 11 extension between Conde Casal station and Plaza Elíptica station. The project also comprises five underground metro stations: Comillas, Madrid Rio, Palos de la Frontera, Atocha Renfe and Conde de Casal. The first three stations are new ones, while Atocha Renfe and Conde de Casal are existing underground metro stations that will be refurbished.

Additionality and Impact

The Project concerns the construction of 7 km of an underground metro line and five underground stations providing much needed additional public transport capacity in key areas of the public transport network of Madrid. In line with EIB's Transport Lending Policy and the Paris Agreement the Project will promote the shift towards sustainable transport modes reducing negative externalities of road traffic (air pollution, noise, greenhouse gas emissions and road accidents), improving travel times, and increasing accessibility to jobs and study opportunities. 

 

The Bank's participation secures access to long-term financing at affordable interest rates, helping to diversify the borrower's funding mix and improving its average life. This is a key contribution considering the very long-term nature of the financed assets and its positive impact on the overall project cost. The flexible drawdown terms and conditions of the EIB loan adjusted to the investment horizon of the project, are highly valued by public promoter as a key differentiating feature of EIB financing.

Objectives

The project shall comply with the objectives set in the EIB's Transport Lending Policy (Decision CA/452/11) and is aligned with the Paris Agreement according to Annex 2 of the EIB Group Climate Bank Roadmap (CBR). The project shall provide a substantial contribution to climate mitigation according to Annex 4 of the CBR and will be reported under the EIB's Public Policy Goal of Sustainable Cities and Regions.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 372 million

Total cost (Approximate amount)

EUR 744 million

Environmental aspects

The project will contribute to reduce pollution and greenhouse gas (GHG) emissions and improve the air quality levels of the local environment by promoting a modal shift from the private car and bus users to cleaner and more efficient metro system.

Procurement

The Bank will require the Promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/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 Official Journal of the EU, as and where required.

Status

Signed - 29/06/2022