UNDER THE terms of a 2006-10 contract-programme signed with the government on November 28, Spanish national operator Renfe has been set the challenge of ensuring that all of its divisions are breaking even within five years. From 2010 it is intended that Renfe will sign separate agreements with local authorities providing financial support for regional and suburban passenger services, while high speed, freight and rolling stock maintenance should be operating on a wholly commercial basis.Of the k4?74bn that central government is to provide in 2006-10, k2?6bn will support regional and suburban operations. Renfe expects to invest k5?77bn over that period, mainly on rolling stock. Of this the government will provide a third at k400m to k450m a year with the remainder to raised through debt or from Renfe’s own resources. This is the first time in 15 years that the government has provided funding for Renfe investment, and the company’s debt is expected to increase from k3?09bn in 2006 to k4?56bn in 2010.Rolling stock investment of k2?14bn is planned for 2006-10, mainly for regional passenger services. On November 28 the Renfe board gave its approval for tendering to start for 55 Civia IV suburban EMUs, which would bring the Civia fleet to 232 units. With the support of the Andaluc?a regional government, the CAF-Santana joint venture is upgrading at a cost of k626 000 its plant at Linares for the production of suburban EMUs. Established at the start of 2006 to assemble LRVs for Sevilla, this facility currently employs up to 100 workers, a number expected to double over the course of 2007.H Under two agreements signed on November 12, Renfe’s Los Prados workshop in M?laga is to build 345 vehicles, providing 700 000?h of work in 2006-10. This comprises 100 cars for five hotel train formations ordered from Talgo, as well as 245 trailer and power cars for the 14 Class 104 and seven Class 130 high speed trainsets ordered from a consortium of Talgo and Bombardier.n