The European Investment Bank (EIB) has lent €500 million to help fund a 370km high speed rail network between Valencia and Madrid. This is the first instalment of a €1.3 billion loan agreed last week at the bank’s annual forum in Barcelona.
Around 39% of the project’s total capital cost is being covered by the EIB and various EU grants. Typically, some 90 percent of a public private partnership would be private financed.
“This is the EIB’s fifth contribution to Spain’s high speed rail network after the Madrid-Seville, Madrid-Barcelona-Figueres, Córdoba-Málaga and Madrid-Valladolid lines,” EIB president Phillipe Maystadt said in a statement.
The project is being undertaken by the state owned Administrator of Railway Infrastructures.