Spain: EIB signs a EUR 50m “Juncker Plan” loan with the municipality of Las Palmas, Gran Canaria, and Guaguas for new bus rapid transit infrastructure

Las Palmas, Gran Canaria, will have a new bus rapid transit system (known locally as MetroGuagua), making it possible to improve public transport in the city with the financial support of the European Investment Bank (EIB). EIB Vice-President Román Escolano, Mayor of Las Palmas, Gran Canaria, Augusto Hidalgo, councillor for mobility and chairman of the board of directors of Guaguas Municipales S.A. José Eduardo Ramírez, and CEO of Guaguas Municipales S.A. Miguel Ángel Rodríguez today signed a EUR 50m loan with an Investment Plan for Europe guarantee. This means that work on the high-capacity line can begin over the next quarter, with the aim of building 11.7 km of roadway dedicated to bus transport.

In addition to the construction of the new bus lanes, the EIB-financed project includes the purchase of 17 new environmentally-friendly electric or hybrid buses, and the construction of three new stations, 17 stops and a traffic control centre. The new bus lanes will run along the coast – together with the major transport arteries – and will help promote tourism in the city as an alternative to the resorts on the south of the island.

In addition to the construction of the new bus lanes, the EIB-financed project includes the purchase of 17 new environmentally-friendly electric or hybrid buses, and the construction of three new stations, 17 stops and a traffic control centre. The new bus lanes will run along the coast – together with the major transport arteries – and will help promote tourism in the city as an alternative to the resorts on the south of the island.

The EIB-financed project also covers the creation of a new bicycle lane and the improvement and widening of pavements bordering the new bus lanes. 

EIB support and the Investment Plan for Europe guarantee have facilitated the long-term financing needed to ensure the viability of a project that will create 1 000 jobs during its construction phase and until it enters into service in 2021.

“This EIB loan will make it possible to improve public transport in Las Palmas, Gran Canaria, increasing capacity and making it easier for islanders to use it to move around more quickly,” said EIB Vice-President Román Escolano at the signing ceremony today. “But the agreement signed today will also contribute to investment in a mobility project based on sustainable and environmentally-friendly urban development.”

Commissioner for Climate Action and Energy Miguel Arias Cañete said:  "Cleaner, more efficient urban transport networks improve the vibrancy of cities and the quality of life of their residents. Today's agreement provides another example of how the Investment Plan is making a valuable contribution towards creating a more energy efficient future for Europe. I am also delighted that more than 1,000 jobs will be supported during the construction phase of this major infrastructure project." 

“Today's signature concludes a process started with the EIB in 2016 to obtain and sign a loan with favourable terms to finance half of the MetroGuagua project. We are making this a reality now that work is beginning,” said Mayor of Las Palmas, Gran Canaria, Augusto Hidalgo, adding that: “this project was drawn up to be economically viable and in line with current planning, and will help to optimise the quality of the urban area through which the infrastructure will run.”

 “MetroGuagua, which will connect Hoya de la Plata with Manuel Becerra (75% of daily journeys within the city take place in this area), will not only improve public mobility in the lower part of the city, but will also enable the restructuring of the entire network, providing a better service in the suburbs, where journey and waiting times will be reduced,” explained councillor and chairman of Guaguas Municipales José Eduardo Ramírez.

The EUR 50m EIB loan facilitates the financing of the project on favourable conditions, both in terms of repayment periods (which are up to 20 years) and interest rates.