LUXEMBOURG NEW CFL HEADQUARTERS

Promoter – Financial Intermediary

SOCIETE NATIONALE DES CHEMINS DE FER LUXEMBOURGEOIS

Location

• Luxembourg

Description

The loan will support urban regeneration in Luxembourg City by renovating and extending the protected buildings hosting the headquarters of the Luxembourgish railways (CFL - CHEMINS DE FER LUXEMBOURGEOIS).

Additionality and Impact

The Project will support urban regeneration through major renovation and extension of protected buildings to host the new CFL headquarters in Luxembourg City. The Project is in line with the City's strategy to regenerate the surrounding areas to the train station, which are substantially deteriorated. It forms part of an urban regeneration ambition by the City. It will improve the accessibility at the north of the train station for pedestrians and cyclists, as well as the creation of a bicycle link through the widening of the Rue de Chemin de Fer. The Project will combine the old heritage with the new design and not only preserve the heritage, but also support the regeneration of the station district. Hence, the Project is aligned with the EIB criteria for urban regeneration and integrated urban development.

The Project is deemed aligned with the Climate Bank Roadmap to a low carbon and resilient pathway, consistent with the Paris Agreement goals and principles. Its contribution to the Bank's Climate Action and Environmental Sustainability objectives (CA&ES) is estimated at appraisal at about 53% of the total Project cost. In addition, the Project is expected to obtain a Green Building Certificate BREEAM and a WELL certificate attesting of its environmental sustainability.

The Project will generate positive economic and social externalities through an improved provision of services, also resulting in higher quality of enabling services for businesses and economic activities, as well as the improvement of the urban environment in the area around the train station.

The Bank participation will secure access to long-term financing at affordable terms, including interest rates. This will help the borrower to diversify its funding mix and extend the average life of its debt, aligning it to the economic life of the assets financed.

Finally, the Project will contribute to promoting progress toward multiple Sustainable Development Goals (SDGs), the most significant one the contribution to sustainable cities and communities (SDG 11).

Objectives

The project is in line with the objectives of the New EU's Leipzig Charter, the EU Urban Agenda as presented in the Pact of Amsterdam of May 2016, as well as the Paris Declaration on heritage as a driver of development adopted in 2011. The project will also contribute to urban regeneration and development, in line with the EIB Urban Lending Review (CA/496/16), which includes public building regeneration and upgrades.

Sector(s)

• Urban development - Construction

Proposed EIB finance (Approximate amount)

EUR 105 million

Total cost (Approximate amount)

EUR 213 million

Environmental aspects

The compliance with the relevant EU Directives will be verified during appraisal: Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, SEA Directive 2001/42/EC, Habitats Directive 92/43/EEC, Birds Directive 2009/147/EC, Urban Wastewater Treatment Directive (91/271/EEC), Energy Performance of Buildings Directive EU/2010/31 and the Energy Efficiency Directive EU/2023/1791, both revised in 2023.

Procurement

The promoter has to ensure that contracts for implementation of the project are tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/EU as well as 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 - 18/12/2024