NETZ ELBE SPREE ROLLING STOCK

This operation will finance newly-purchased rolling stock for the winners of the presently pending tender for the operation Netz Elbe Spree (NES). The NES network provides regional rail services in Berlin and three surrounding federal states Mecklenburg-Vorpommern, Brandenburg and Sachsen-Anhalt. Under the tender there are four lots to provide rail services on 18 railway lines; 17 regional railway lines and the Berlin Brandenburg Airport (BER) rail express (FEX) to the new airport.

The new fleet will enable improved passenger train services. The project is likely to reduce the use of private vehicles or at least contribute to maintaining modal share of rail, thus contributing to more sustainable transport outcomes by reducing related negative transport externalities. The project will, therefore, contribute to EU objectives and to the Bank's Climate Action objective. The project falls within the Lending Policy for Transport. Furthermore this project supports the development of competition in a sector with high barriers to entry. The project is, therefore, eligible under Article 309 point (c) "common interest", of the Treaty on the Functioning of the EU. If bi-mode trains are included in the scope then this project would fall under the Cleaner Transport Facility (CTF). The CTF was jointly launched by the Bank and the Commission in late 2016 as a vehicle to promote new, cleaner technology in transport.

The investment proposed under the project does not fall under either Annex I or Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as manufacturing of rail rolling stock is not included in either list. The need of an EIA and/or assessment according to the Habitants Directive for associated facilities (e.g. maintenance workshops, depots or infrastructure) and the arrangements for the scrapping of the replaced rolling stock will be analysed during the appraisal. The project is expected to have a positive environmental impact by supporting the railways to maintain or enlarge 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 the implementation of the project have been/shall be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/24/EC) as interpreted by the Court of Justice of the EU, with the publication of tender notices in the EU Official Journal, as and where required. The tender notice for the public service contracts was published in the OJEU on 22 November 2017 (2017/S 224-466191).