ADIF RAIL RENEWAL & RESILIENCE

Promoter – Financial Intermediary

ADIF ALTA VELOCIDAD

Location

• Spain

Description

The project concerns multiple schemes for the renewal and upgrade of the Spanish high-speed and conventional railway networks.

Additionality and Impact

The project is fully aligned with the EU and Bank's ambition to support sustainable transport. The investments include components aimed at strengthening the resilience of the network, hence reinforcing its efficiency and service standards. Moreover, a significant share of the investments are expected to take place in Cohesion regions, hence improving their connectivity to other areas and likely resulting into spillover effects on local activity and economic dynamism.

The Project will contribute to ensuring high safety, environmental and performance standards on the Spanish railway network through the renewal of key rail infrastructure components at the end of their economic life, the introduction of technologies to enable the implementation of interoperability standards (e.g. Global System for Mobile Communications - Railway, GSM-R) as well as a series of schemes that enhance resilience to operational and climate contingencies, thus mitigating the risks of traffic disruption and line closures. The investments will strengthen the competitive position and attractiveness of rail transport and ensure business continuity with appropriate service levels. 



The long tenor and grace period of the EIB loan will help to increase the average life of ADIF AV´s debt therefore reducing its refinancing risk. The flexibility of drawdowns will allow optimising ADIF's strategy to tap capital markets and raise additional funding sources that will co-finance the Project. Overall, EIB financing will contribute to improving the sustainability of ADIF AV´s debt and its capacity to undertake investments as needed.  

Objectives

The scope of works in the high-speed network, which is entirely electrified, includes the implementation of protective barriers on critical points, improvement of drainage, accessibility to control centres, anti-vandal modules, the renewal of telecom, safety and energy systems as well as other upgrades identified during maintenance works. In the conventional railway network, the scope of works includes a programme of removal of level crossings, track renewal, installation of telecom equipment as well as other renewal upgrades identified during maintenance works and installation of improvement of GSM-R (Global System for Mobile Communications Railway). 60% of the conventional network is electrified and almost half of the non-electrified lines, those included on the Trans-European Transport Network (TEN-T) have plans for electrification.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 350 million

Total cost (Approximate amount)

EUR 836 million

Environmental aspects

Most of the schemes included under this project will be undertaken on the existing infrastructure and are not expected to fall under Annex I or II of the Environmental Impact Assessment Directive (EIA) 2011/92/EU (as amended by Directive 2014/52/EU); therefore they are not expected to be subject to EIA. In any case, where and if applicable, the Promoter will be required to comply with the requirements of the Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU. Where and if applicable, the Promoter will be required to comply with the requirements of the Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC. The project is expected to have a positive environmental impact by helping railways to maintain modal share in key sections of the passenger and freight market that are most appropriately met by rail. Thus, the project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate change mitigation and pollution reduction. Furthermore, some components of the project such as the improvement of access roads to technical control centres and drainage works, are expected to contribute to climate change adaptation too.

Procurement

The promoter has to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation, 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 EU Official Journal, as and where required.

Status

Signed - 10/01/2025