PLAN RAIL NOUVELLE AQUITAINE

The project is expected to consist of multiple schemes, including acquisition of electric rail rolling stock, retrofit of diesel trains, modernisation of rail lines, including the construction of the new suburban express commuter rail network, RER Métropolitain de Bordeaux (linking Bordeaux and its suburbs in the Bordeaux metropolitan area and acquisition of associated rolling stock) and new construction of rail depots in the Nouvelle Aquitaine Region in France

The aim of the project is to accelerate the decarbonization of the regional mobility including the regional railways operations on non-electrified lines in the Region. The project will cover infrastructure investments (mainly the rehabilitation and upgrade of existing railway infrastructure), as well as acquisition and modernisation of rolling stock aimed at improving the quality and increase the offer of commuter, regional and long distance passenger rail services within and in relation with the Nouvelle-Aquitaine Region in France.

Conscious that the modal shift towards public transport is a key factor to decarbonizing the mobility, The Region Nouvelle Aquitaine is deploying the full range of its resources to support investments that will accelerate it around the Bordeaux capital region but also in all less developed and more rural areas of the region. The poor state of the rail network has undermined the development of public transport solutions over the last decade. The Region has decided launched a rail plan designed to upgrade and regenerate the entire regional rail network. 

This operation, structured as a Framework Loan, is expected to include infrastructure investments as well as acquisition and modernisation of rolling stock aimed at improving the quality and increasing the offer of commuter, regional and long distance passenger rail services within and connecting the Nouvelle-Aquitaine Region in France with other regions. The project will also support cleaner railway operations with the deployment of alternative propulsion railway systems.

The project yields good benefit streams from reduced journey times, ensuring several railway lines in poor condition will not be closed or will be reopened, efficient operation, reduced vehicle operation costs and energy consumption, improved comfort and safety and reduced environmental cost of the transport system. By improving the quality and the level of services, the project will help railways compete with other modes maintain and/or improve its modal share. The project is located in an EIB Cohesion region.

The Project is fully aligned with EIB public policy goals (sustainability and green transformation; innovation) and will contribute to a wide range of EU policy objectives, in particular those strengthening the EU's economic, social and territorial cohesion and the decarbonisation and modernisation of the European transport and mobility system. The schemes to be financed will contribute to EU, France and the Region's climate and environmental priorities and cross-cutting objectives and policies.

The long-term financing granted by the Bank will help to make the investment more cost-efficient for the borrower and will allow it to diversify its sources of financing. The possibility of obtaining a fixed rate over a long maturity, the repayment deferral and the flexibility offered during drawings are elements which will make it possible to adapt/spread the debt service burden.

In relation to the infrastructure works and construction of depots, the compliance with the requirements of the EIA directive and the development consents are to be reviewed during appraisal. The project's potential impacts on protected areas and species, in accordance with the Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC) will also be appraised. The components related to acquisition of rolling stock do not fall under either Annex I or Annex II of the Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU. In addition, the arrangements for the scrapping of the replaced stock and for any decommissioning of maintenance depots will be checked during appraisal. The project is expected to have a positive environmental impact by helping railways to maintain modal share in key sections of the passenger market that are most appropriately met by rail.

The Bank will require the Promoter to ensure that contracts for implementation of the project have been or will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/25/EU or Directive 2004/17/EC as applicable, as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.