WARSAW TRAMWAY III

Promoter – Financial Intermediary

TRAMWAJE WARSZAWSKIE SP ZOO

Location

• Poland

Description

The operation will finance the extension of the tram network in Warsaw, during the period 2022-2026. In particular, it will cover about 16 km of a new tramline and the construction of a new depot at Annopol, which will serve both the existing and the wider tram operations.

Additionality and Impact

The Operation contributes to several Sustainable Development Goals and to EU and EIB policies objectives. The Project complies with the objectives set in the EIB's Transport Lending Policy and is aligned with the Paris Agreement, according to Annex 2 the EIB's Climate Bank Roadmap. The Project provides a substantial contribution to Climate Change Mitigation according to Annex 4 of the EIB's Climate Bank Roadmap. The project will also contribute to Climate Action and Environmental Sustainability Objectives.

The Project addresses a number of market failures that justify the use of public financing to address the investment gap. The Project includes investment in public transport infrastructure that is expected to generate positive externalities for the city's residents and mitigate negative externalities of road traffic such as congestion and road safety. The new tram line will provide an affordable mobility solution to increase accessibility and connectivity of several districts in the city.

 

The loan will be a cornerstone of the financing for the Borrower's investment programme in public transport. The loan will offer key benefits such as a long loan maturity and flexibility with respect to availability period, interest rate arrangements and grace periods, which will enable the required alignment with the implementation and financial modalities of the Project. 

Objectives

The project supports the implementation of the 2016 Sustainable Mobility Plan for the Warsaw Functional Area. The project should have an overall positive impact on the environment by promoting sustainable urban mobility and reducing GHG emissions and environmental pollution.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

PLN 950 million (EUR 203 million)

Total cost (Approximate amount)

PLN 2536 million (EUR 542 million)

Environmental aspects

The promoter's environmental management capacity to apply the relevant EU Directives will be verified during appraisal, particularly the EU environmental impact assessment (EIA) Directive 2011/92/EU amended by 2014/52/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. The project falls under Annex II of the EIA Directive under which the Environmental Competent Authority decides case-by-case whether a formal EIA is required. Compliance with the relevant Directives will also be further assessed during project appraisal.

Procurement

The EIB 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 2014/23/EU / 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/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 - 22/12/2022