METRO DE MALAGA LINE 2 EXTENSION

The project will finance works and installations for the construction of the Malaga Metro Line 2 extension between Guadalmedina and Hospital Civil, in the City of Malaga with a total length of 1.8 kilometres of underground heavy metro. The project includes the construction of 3 new underground stations, while the purchase of rolling stock for the metro operation is excluded from this operation.

The aim is to support investments in sustainable urban public transport, which is expected to reduce transport externalities, such as air pollution and greenhouse gas emissions. The metro line extension will also reduce travel times and road traffic congestion by promoting modal shift from private car users to public transport. In addition, being located within a less developed EU region, the project supports the strengthening of the EU's economic, social and territorial cohesion.

The Project concerns the extension of the existing metro line 2 in Malaga City. The Project complies with the Bank's Paris Alignment criteria as defined in the CBR (Climate Bank Roadmap) and is fully consistent with the EIB Transport Lending Policy. The Project's contribution to the Bank's Climate Action and Environmental Sustainability (CAES) objective is 100% of the total cost. The Project is expected to increase accessibility to the public transport network, which in turn, is expected to reduce negative externalities of road traffic, improve air quality and reduce Greenhouse Gas (GHG) emissions from transport in Malaga.

In addition, the Project is located within a less developed region of the EU. The Project therefore supports the strengthening of the EU's economic, social and territorial cohesion (100%).

Finally, EIB's financing provides financial benefits, longer tenor, and flexible loan conditions. It also helps Andalusia diversify its financing sources and provides funding stability.

The promoter's environmental management capacity to apply the relevant EU Directives will be verified during appraisal, particularly with regard to EU Environmental impact Assessment (EIA) Directive 2011/92/EU amended by 2014/52/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. A formal EIA was prepared for the project and following with that, after the public consultation process, the environmental Competent Authority issued the environmental permit. Compliance with the relevant Directives will also be further assessed during project appraisal. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation and pollution prevention.

The promoter shall ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation, for contracts above the threshold; namely Directive 2014/24/EU as well as Directive 92/13/EEC or 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.