EIB and the region of Valencia sign €50 million loan agreement to modernise public rail transport

Metrovalencia and Alicante tram operator Ferrocarrils de la Generalitat Valenciana (FGV) will improve the coverage and sustainability of public transport in the region. This loan is the first tranche of approved financing totalling €300 million. The EU bank credit line will facilitate improvements to existing infrastructure and the purchase of rolling stock, enhancing service quality, safety and accessibility.

The project will be co-financed by the European Regional Development Fund (ERDF) and the Recovery and Resilience Facility (RRF). The European Investment Bank (EIB) and the region of Valencia have signed a €50 million finance contract for Ferrocarrils de la Generalitat Valenciana (FGV), a public company owned by the regional government responsible for operating and managing regional railways, the Valencia metro network and the Alicante tram.

The loan is the first tranche of approved financing totalling €300 million to enable FGV to modernise and expand its railway infrastructure, and to improve its fleet by purchasing new rolling stock and modernising its existing units. The Valencia-based operator is therefore investing in improvements to increase the coverage, quality, safety and accessibility of public rail transport services.

The main added value of this operation is the increased use of sustainable and accessible public transport, cutting the number of private car journeys and promoting intermodality and a shift to sustainable and low-carbon modes of transport. The project will deliver environmental benefits in urban and suburban areas by reducing road traffic congestion, atmospheric pollution and greenhouse gas emissions. The investments financed include the implementation of new technologies, such as the 'NaviLens' system, which will facilitate orientation for the visually impaired in all Metrovalencia and Alicante tram stations and carriages.

Investment will also be made in measures to improve accessibility for passengers with reduced mobility and in the replacement of all incandescent Metrovalencia signage with more efficient and sustainable LED lighting. The project includes relevant infrastructure actions, such as track duplications and electrification of sections of the Alicante tram network, as well as relevant investments in digitalisation, such as the installation of video surveillance equipment and communications systems in the Metrovalencia fleet.

The agreement was signed today by EIB Vice-President Ricardo Mourinho Félix and Minister of Finance and Economic Model for the Valencia region Arcadi España. Minister of Land Policy, Public Works and Mobility for the Valencia region Rebeca Torró also attended the meeting. Following the meeting, the EIB delegation visited Bailén station and the pedestrian connection to the Alacant stop.  The EIB team also travelled on the new Metrovalencia line 10 to the Amado Granell stop.

BEI-2023-017, 19.1.2023
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