EIB and Valencia sign €50m agreement to modernize sustainable rail transport

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The European Investment Bank (EIB) and the region of Valencia have signed a €50m finance contract for Valencian public railway company Ferrocarrils de la Generalitat Valenciana (FGV) to modernize and expand sustainable public rail transport in the area.

EIB and the region of Valencia sign €50m loan agreement for FGV to modernize and expand sustainable public rail transport

The loan is the first tranche of approved financing totaling €300m to enable FGV to modernize and expand its railway infrastructure, and to improve its fleet by purchasing new rolling stock and modernizing 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.

FGV is a public company owned by the regional government responsible for operating and managing regional railways, the Valencia metro network, and the Alicante tram.

According to the EIB, the main added value of the funding 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 includes relevant infrastructure actions, such as track duplications and electrification of sections of the Alicante tram network, as well as relevant investments in digitalization, such as the installation of video surveillance equipment and communications systems in the Metrovalencia fleet.

EIB vice-president Ricardo Mourinho Félix said, “We are delighted to be working with the Valencia region once again on a strategic transport investment set to have a major impact on local residents and visitors. With the need to transform the sector in mind and as the EU climate bank, the EIB is promoting projects developing an urban mobility model sustainably and efficiently meeting user requirements. Transport plays a key role in the modern economy and this operation will enable Ferrocarrils de la Generalitat Valenciana to provide clear social and environmental benefits.”

Co-financed by the European Regional Development Fund (ERDF) and the Valencia region’s recovery, transformation, and resilience plan (NextGenerationEU funds), the project includes investment in various areas such as safety, digitalization, modernization, and increased transport capacity.

This investment plan is a key component of the priorities covered in the Valencia region’s UNEIX 2018-2030 mobility and infrastructure strategy, the Valencia 2030 climate change and energy strategy, and the region’s various metropolitan mobility plans (PMoMe).