SG EUROPEAN GREEN TRANSPORTATION EQUIPMENT FL

Promoter – Financial Intermediary

SOCIETE GENERALE

Location

• France
• EU Countries

Description

The proposed operation aims at supporting green investments for the renewal of urban and interurban mobile assets for the provision of services under public services contracts (e.g. bikes, buses, coaches, rail vehicles, metros, trams) as well as investments in digitalisation primarily in France and across Europe.

Additionality and Impact

The Framework Loan will help support the implementation of the Clean Vehicle Directive ("CVD") and the deployment of zero-emission transport solutions to contribute to the decarbonisation of the transport sector. The investments covered under this FL are expected to deliver benefits in terms of lower operational and maintenance costs as well as environmental and social benefits (safety, reduced local pollution, noise and global warming) thanks to the introduction of cleaner technologies in vehicles' fleets. 

The project is expected to contribute to the following objectives that address market failures through: 

(a) the reduction of the related negative road transport externalities, 

(b) the generation of positive externalities through improved accessibility to services and employment by providing a more efficient and affordable alternative for urban mobility needs and 

(c) the improvement of the efficiency of the transport network and the optimisation of the use of public goods thus bringing benefits in terms of time and cost savings, and less traffic congestion. 

Objectives

The proposed operation is a multi-country framework loan, in support of both public and private entities' investments in the renewal and decarbonisation of urban and interurban mobile assets for the provision of services under public services contracts (e.g. bikes, buses, coaches, rail vehicles, metros, trams, rolling stock renewals) as well as investments in digitalisation (Mobility as a Service (MaaS) platforms, ticketing systems) primarily in France and across Europe. The operation will contribute to the deployment of Alternative Fuels vehicles operated under a public service obligation contract and mainly targets zero-emission buses (electricity and hydrogen) and the associated infrastructure needs, such as charging and refuelling, software and IT systems. Renewal of other urban and interurban public transport vehicles (rail rolling stock, metros and tramways) will also be eligible for financing.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 150 million

Total cost (Approximate amount)

EUR 300 million

Environmental aspects

The project is a multi-scheme framework, therefore the need for an environmental impact assessment (EIA), in accordance with Directive 2011/92/EU (as amended by Directive 2014/52/EU), may vary depending on the characteristics of each scheme and will be analysed on a case by case basis. Any potential significant impacts on protected areas and the need for an appropriate assessment in accordance with the Habitats Directive 92/43/EEC will also be analysed on a case by case basis. The Bank services will also specifically assess the arrangements for scrapping of the dismissed rolling stock. The project is expected to generate a substantial level of environmental benefits in terms of reduced air pollution, greenhouse gas emissions and noise, in particular in urban areas.

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, with publication of tender notices in the Official Journal of the EU, as and where required.

Status

Signed - 10/10/2023