EU bank confirms support for first line of Bogotá metro with US$480m in financing
The European Investment Bank (EIB) today reiterated its commitment to finance the first line of Bogotá metro, a project to which the EU bank is contributing with a USD 480m credit line. EIB Vice-President Emma Navarro, who is currently on an official visit to Colombia, met today with the Manager of Empresa Metro de Bogotá S.A., Andrés Escobar, to analyse the project’s progress and the EIB’s involvement in its financing. The EU bank provided the first tranche of this loan – US$56m – in August.
This financing is part of the EIB’s efforts to promote climate action, supporting the use of public transport helping to cut pollutant emissions. The EIB is granting this loan on favourable terms under its Climate Action and Environment Facility. The first metro line will foster economic growth by generating new business opportunities, making it easier for workers to reach the city centre and promoting job creation.
After her meeting with the Manager of Empresa Metro, EIB Vice-President Emma Navarro indicated that “the EU bank is pleased to contribute to the development of a major piece of infrastructure that will have a direct positive impact on the lives of millions of people, and that will transform Bogotá, making it more accessible and sustainable as a result of the project’s positive environmental impact. We are happy to reiterate the EIB’s determination to provide its financial resources and technical experience so that this project is a success.”
For his part, Empresa Metro’s Manager expressed his appreciation of the support provided by the EU bank. “Subjecting ourselves to an evaluation by a bank targeting sustainable development, such as the EIB, is a way of validating our work and ensuring that we will deliver the best possible project for the city. We are grateful not only for the EIB’s financial backing, but also for its technical support,” concluded Andrés Escobar.
The project consists of the first section of the 24 km first line, a depot and 16 stations, including 10 interchanges with the TransMilenio network. It also comprises the development of the associated roads with 19 km of new cycle paths, and other improvements aimed at sustainability. The project is expected to start operations with 23 trains, each able to carry 1 800 passengers.
Climate action and support for public transport
The EIB provides more financing for projects reducing the impact of climate change than any other institution. Last year, 28% of its activity – €19.4bn – was dedicated to this objective. Part of this financing was focused on promoting cleaner modes of transport, specifically on supporting metro networks in various cities across the world.
The EIB in Latin America
The European Union is the main partner for the development of the Latin America region, its number one investor and second biggest trade partner. The European Investment Bank (ElB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy objectives.
The EIB provides economic support for projects in Latin America by offering both long-term investment with favourable conditions and the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in the region in 1993, it has provided total financing of €8.2bn to support 110 projects in 14 countries.
In 2017, the EU bank provided EUR 631m to finance projects in the region in sectors as diverse as energy, transport, water infrastructure, climate action and assistance for small and medium-sized enterprises.