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June 20, 2024
PI Global Investments

EIB and ICO part-finance Madrid metro’s €1bn purchase of 80 new trains

The Madrid metro has signed a €820m ($898m) loan agreement with the European Investment Bank (EIB) and the Instituto de Crédito Oficial (ICO) to support the purchase of 80 new trains for its network. 

Metro de Madrid’s purchase of the six-car trains was first approved by the Spanish capital city’s regional government back in October, but last month’s loan agreement will allow the process to move forward as the metro looks to modernise its rolling stock. 

The EIB will loan €470m towards the purchase of the 40 narrow-gauge and 40 broad-gauge trains, while the ICO will provide another €350m, covering 88% of the €1.094bn cost of the order. 

The first of the new trains are expected to enter into service by the end of 2026 and will be used across the metro’s lines 1, 6, 8 and 11 to both replace older rolling stock and increase the fleet in order to cater for planned extensions to the network and a new Madrid Nuevo Norte route. 

In addition to modernising the network, the purchase is also expected to improve the sustainability of the metro with the new trains set to be more energy efficient than current rolling stock and the design, manufacture, operation and maintenance to be based on sustainability criteria. 

The project page for the loan on the EIB’s website states that the purchase is also “expected to generate positive externalities for the city’s residents in terms of supporting accessibility to services and employment by providing a more efficient and affordable alternative for urban mobility needs.”

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By GlobalData

The loan agreement marks the latest investment into Spain’s rail network, which recently celebrated the opening of a new high-speed line from Madrid to Asturias.

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