Brussels, 16/06/2011 (Agence Europe) - €1.2 billion is the value of funding decided upon by the European Investment Bank (EIB) on Thursday 16 June, for the South Europe Atlantic high-speed rail project (SEA HSR) between Tours and Bordeaux. One of the most ambitious railway projects at European level, the line will make Bordeaux two hours and five minutes away from Paris after six years of design and construction.
The EIB's funding breaks down as follows: - €1billion of debt (including €400 million in state-guaranteed debt as part of the relaunch plan, €200 million of non-state-guaranteed credit, nearly €400 million in own-fund bridging loans); - €200 million in LGTT (Loan Guarantee on TEN-T projects), an instrument set in place jointly by the Bank and the European Commission and used on a French project for the first time.
With this unprecedented funding - the largest ever made by the EIB in France - the EIB states that it “is confirming its capacity to accompany major projects for the modernisation and extension of the trans-European networks (TEN), using innovative and competitive funding tools”.
Stressing the innovative nature of the funding structure of the project and its “undisclosed” contractual assembly, Philippe de Fontaine Vive, Vice-President of the EIB, states that the “EIB's involvement in the project has been decisive and a catalyst”. He went on to state that “this is the first time that the EIB has committed itself in France for such an amount - 1.2 billion with the use of innovative and diversified instruments, such as the loan guarantee instrument LGTT”. “Our aim is to encourage the private sector to get more broadly involved with the funding of infrastructure, for sustainable and safer transport, breathing new life into badly-serviced areas, and an increased opening-up on the trans-European networks and corridors”, de Fontaine Vive concluded.
The EIB decided to earmark at least €75 billion for the trans-European transport projects (TEN-T) over the period 2004-2013. In 2010, it lent €8.1 billion to support TEN-Ts and the major transport axes. As for the EIB's solid support to innovative funding of public-private partnerships, this translates into an overall financial commitment at European level in excess of €26.8 billion between 2000 and 2010.
The concession contract for the future South Europe Atlantic high-speed rail line between Tours and Bordeaux was signed on Thursday by the concessions company LISEA, represented by Xavier Huillard, the CEO of VINCI, and Réseau Ferré de France (RFF). (O.L./transl.fl)