EIB supports upgrade of Warsaw regional railways
Posted: 16 May 2012 | | No comments yet
The EIB is lending PLN 155 million to finance the purchase of new rolling stock & implementation of infrastructure improvements…
The European Investment Bank (EIB) is lending PLN 155 million (some EUR 39 million) to finance the purchase of new rolling stock and implementation of infrastructure improvements for the light regional railway line connecting the south-western parts of Warsaw with neighbouring communes and smaller municipalities.
This railway modernisation will have positive impacts on transport safety and passenger comfort. It will help to increase the mobility of the people employed in the Polish capital and so increase their quality of life and the competitiveness of the whole region.
The EIB loan will support the purchase of fourteen new Electrical Multiple Units, each with a maximum capacity of 500 passengers, of which 120 may be seated. The project also covers various infrastructure improvements required for the new rolling stock to be used efficiently, i.e. track improvements, upgrading of the power supply, an improved passenger information and monitoring system, and the installation of a fibre optic cable.
The new rolling stock will almost entirely replace the existing fleet and the improvements will enable transport capacity to be increased by some 17% thanks to the higher speeds and reduced maintenance requirements of the new trains.
The borrower is Warsaw’s regional rail company (WKD), which signed a 15-year Public Service Contract for the provision of passenger rail services with the Mazowiecki region in 2009. This will be further enhanced by a Support Agreement to be signed between the region, the EIB and WKD. The Public Service Contract and the Support Agreement provide the main security for the EIB loan.
In the past the Bank has provided finance for several projects to develop the infrastructure of the Mazovia region (the construction of two sections of the Warsaw motorway ring-road, modernisation of the rolling stock of Mazovian Railways and the modernisation and extension of the Warsaw tram network. The EIB has also supported the financing of smaller projects involving infrastructure improvements in the fields of transport, education, research, development and innovation dissemination and the rehabilitation of regional infrastructure and community facilities. In addition, the Bank is expected to co-finance the construction of Warsaw’s new metro line.
The European Investment Bank is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.