Brussels, 27/09/2010 (Agence Europe) - On Friday 24 September, the European Investment Bank (EIB) awarded the Midi-Pyrénées Region (France) a “Renewable Energy” loan of €350 million and a €300 million loan to refurbish and upgrade the rail network.
The “Renewable Energy” loan is principally directed at public and private companies, farms and local authorities and target schemes such as: - the installation in the region of renewable energy generation facilities (photovoltaic, wind, “on-farm” and “centralised” methanisation); - improvement of the energy performance of public and private buildings in the region with the aim of reducing energy consumption by at least 20%. This Midi-Pyrénées Region programme is being partly financed by the EIB with a €350 million credit line made available to two partner banks: Crédit Agricole and the BPCE Group (Banque Populaire et Caisse d'Epargne de Midi-Pyrénées). These two banking groups will jointly provide an additional €350 million to co-finance this major regional renewable energy programme. They will manage a total package of €700 million and be responsible for assessing loan applications throughout the region. The Midi-Pyrénées Region has undertaken to guarantee 25% of the total amount of loans granted to very small, small and medium-sized businesses and farms for renewable energy generation projects, making it possible to improve the terms offered. The “Renewable Energy” product is at present unique in France in terms of the scale of the investment, the range of renewable energies concerned and the variety of projects targeted. Midi-Pyrénées is the first French Region to have obtained such a package for energy projects from the EIB and the only one to promote - with the help of this partnership and the regional banks - the three types of renewable energy (photovoltaic, wind and biogas) and improved energy performance.
The €300 million finance contract to upgrade and develop the rail network forms part of the Midi-Pyrénées Region's 2008-2013 Rail Plan, the first of this scale in France mainly devoted to the regional express network. The plan was made necessary by the run-down state of the regional network, which resulted in the closure of numerous regional express lines. It seeks to provide the region with an upgraded and permanent network of 500 km of lines with the aim of increasing frequency of services and cutting journey times. The plan comprises a set of schemes involving track renewal and dualling, reinforcement of engineering structures and the installation of new traffic management systems that are essential to cater for the substantial increase in traffic. The Rail Plan, launched by the Midi-Pyrénées Region, which is contributing €400 million of the total €820 million, has been signed with SNCF (French National Railways) and is being co-financed by RFF (Réseau ferré français/French Rail Network), the French government and the European Union (ERDF). The €300 million EIB loan will specifically serve to facilitate traffic between Toulouse and St Sulpice, currently one of the busiest single-track lines in Europe, by refurbishing: - the track and its components between Empalot and Auch, Figeac and Bagnac, Brive and Capdenac, Capdenac and Rodez, Tessonnières and Capdenac, Portet and Tarascon, Toulouse and St Sulpice, and St Sulpice and Tessonnières; - the Tessonnières-Rodez, Tarascon-Latour de Carol and St Sulpice-Mazamet sections of line. This loan forms part of the EIB's ongoing priority initiatives in transport, an integral component of which is to encourage travellers to switch from road to rail. The aim is to improve traffic flows and road safety, and also to reduce greenhouse gas emissions.
Commenting on the signing of these loans in Toulouse, EIB Vice-President Philippe de Fontaine Vive said that “this financing operation will trigger investment of over €1.5 billion in the Midi-Pyrénées Region”. He added: “What we are launching today is a mini regional and European recovery plan in support of the 2020 vision of a competitive European economy”. (O.L./transl.rt)