The FINANCIAL -- The EBRD is supporting the modernisation of the tram system in Poland’s capital Warsaw with a loan of up to PLN 200 million (equivalent to approximately €49.2 million) to Warsaw Tramways to finance the company’s investment programme.
"Wholly-owned by the city of Warsaw, Warsaw Tramways is operating 34 tram lines, managing 124 kilometres of track and carrying over 270 million passengers annually. Despite a well developed network of tram routes, the quality of tram services in Warsaw can be significantly improved with modernised rolling stock and tracks, as well as better equipped tram stops," EBRD says.
The EBRD loan will co-finance the investments to upgrade the tram system in Warsaw, helping local authorities to address the problem of growing congestion in the city. The investment programme includes the acquisition of 186 energy efficient modern trams, the modernisation of 29 kilometres of tram tracks and refurbishment of tram stops related infrastructure.
Structured under the EBRD’s A/B loan scheme, the Bank is retaining PLN 100 million on its own account with the rest being syndicated to commercial banks. With a total cost of PLN 1.9 billion, the project is co-financed by EU Cohesion Funds and the European Investment Bank.
The project will bring improved and more reliable tram services to passengers in Warsaw and will lead to a considerable reduction in CO2 emissions, estimated at 30,000 tonnes annually. The EBRD with the support of technical assistance funds from the Central European Initiative (CEI)* will help Polish authorities to develop the necessary framework to monetise carbon emission reductions in urban transport via the sale of carbon credits.
“We are pleased to support this important project for Warsaw. It will enable Warsaw Tramways to improve significantly the quality of its services and attract more passengers. The modernisation of the tram system and the use of green technology will enable the company to improve its operational efficiency”, said Jean-Patrick Marquet, EBRD Director of Municipal and Environmental Infrastructure.
“This project is very important for the development of urban transport in Warsaw. Not only will it help to introduce modern and energy efficient rolling stock but it will also support the expansion of the tram network through the new tram line to Tarchomin, one of the districts of the city. The modernisation of the tram system will encourage Warsaw citizens to switch from cars to urban transport,” said Krzysztof Karos, the President of Warsaw Tramways.
Since the beginning of its operations in Poland, the EBRD has committed over €4 billion in various sectors of the country’s economy, mobilising additional investment of over €10.8 billion.
Related Stories
