MATERIEL ROULANT REGION GRAND EST II

Promoter – Financial Intermediary

REGION GRAND EST

Location

• France

Description

The project concerns the modernisation of multiple units (around 80 electric and 15 bi[1]mode diesel electric), as well as the retrofit with European Railway Traffic Management System (ERTMS) of 16 electric multiple units. The trains will be used for regional rail services across the Grand Est Region, while the ETCS retrofitted units will also be used for rail connections to Luxembourg under public service contracts.

Additionality and Impact

The project is part of a larger fleet renewal programme of the region and consists of modernisation of 107 electric and bimode (diesel /electric) multiple units and retrofit of 16 electric multiple units with European Rail Traffic Management System (ERTMS) on-board units (OBU). 

The modernised rolling stock will contribute to improving the quality of rail services offered in the region, promoting more efficient operation, reducing maintenance costs, and increasing the level of comfort for passengers. Indirectly, by improving services, the project will help railways compete with other modes, particularly private vehicles so as to maintain its modal share. Preventing modal shift from to road may result in reduced vehicle operating costs, safety and environmental benefits.

Furthermore, the ERTMS component will bring improved safety, as well as time savings, reduction of operating and maintenance costs. Regardless of the benefits, ERTMS is a compulsory system to be installed on the TEN-T network to fulfil the European legislative requirements and on-board units are a necessary element to materialize the benefits of the ERTMS. 

The project is located in an EIB cohesion region. 

EIB's loan plays an important role in securing a competitive overall funding of the operation, sending a positive signal to commercial co-funders and contributing to the robustness of the business case. It lowers the Borrower's funding costs and provides a stable long term funding base. 

Objectives

The project is expected to facilitate access to rolling stock by various rail operators and accordingly liberalisation of rail services.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 165 million

Total cost (Approximate amount)

EUR 517 million

Environmental aspects

The project does not fall under either Annex I or Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive2014/52/EU. 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. In addition, the arrangements for the scrapping of the replaced stock will be checked during 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 passenger market that are most appropriately met by rail.

Procurement

The EIB will require the promoter to ensure that contracts for implementation of the components of the project will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/25/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 EU Official Journal, as and where required. In the case of the new trainsets, the rolling stock is being procured under an existing framework contract, valid until October 2023, for which the contract and award notices were published in the OJEU (2007/S 247-302465; 2009/S 221-317680). This framework was tendered in accordance with the relevant applicable EU procurement legislation at the time of procurement: Directive 2004/17/EC, applicable, as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU.

Status

Signed - 18/10/2023