Source: European Investment Bank
- Funding earmarked for renewal of tram fleet and investment in energy and water supply
- EU bank’s low-interest loan has a maturity of 25 years
The European Investment Bank (EIB) is providing Stadtwerke Halle (SWH) with a €200 million loan. The funds are intended to finance a comprehensive renewal and modernisation programme for the SWH Group’s core areas: public transport, energy supply, and water and sewage. As part of the loan agreement, some of the funds will be used for the purchase of almost 60 new tram vehicles by SWH’s subsidiary Hallesche Verkehrs-AG (HAVAG).
Other funds are earmarked for major investments in energy and water, with a focus on electricity and district heating grids along with water supply and sewage networks. The interest rate on the loan to Stadtwerke Halle is particularly low since the EU bank’s outstanding credit rating means its refinancing costs are very favourable, and it passes these on to its customers. The loan also has a long maturity of 25 years, reflecting the long-term nature of the investments.
Vice-President Ambroise Fayolle, who is responsible for the EU bank’s activities in Germany, said: “I am delighted that we have found a strong new partner in Stadtwerke Halle and that with this funding, we can make a long-term contribution to providing the residents of Halle with efficient and affordable public services. The European cohesion policy aims to help the regions in Europe realise their full potential, and this project is a good example of this goal. The project also makes a major contribution to environmental and climate protection. Strengthening regional cohesion and fighting against climate change are both priorities for the EU bank.”
Matthias Lux, chief executive of Stadtwerke Halle, said: “I am also extremely pleased to have gained a strong and reliable partner in the European Investment Bank for the extensive investments that we at the Stadtwerke Halle Group intend to implement in the beautiful city of Halle over the coming years.”
Stadtwerke Halle is a one-stop-shop offering a full suite of services to the municipality and economy, ranging from energy and water supply to local public transport, the collection of recyclables, sewage and waste disposal, road-cleaning, gritting and snow-clearing, logistics, landfill, infrastructure, data processing services, public baths and street-lighting. With 2 958 employees and trainees and annual revenue of €624 million in 2019, Stadtwerke Halle is the largest commercial employer in Halle and the largest municipal utility company in the Federal State of Saxony-Anhalt.