THE EUROPEAN INVESTMENT Bank has awarded a loan of 700bn lire to the Italian high-speed project company TAV SpA as the first tranche of an agreed total of 3 200bn lire. Repayable over 25 years with interest at 5·44%, the money will speed construction of the Roma - Napoli and Firenze - Bologna - Milano routes.
TAV has negotiated commercial finance for 60% of its national programme, with the Italian government contributing the rest. Construction costs are being met from a 5 000bn lire bridging loan, which will be replaced by the long-term debt.
TAV says work on the 205 km Roma - Napoli route being built by Iricav-Uno is 40% complete, with opening envisaged for 2001. By contrast the Cavet consortium has only completed 10% of the 78·4 km Firenze - Bolgona route, which is not expected to open before 2005. Construction of the Milano - Torino leg is expected to get under way at the end of this year.
Once completed, the lines will be transferred to the FS Rete infrastructure business unit, which will receive track access charges from the long-distance passenger business and pay a rental fee to TAV to cover the loan repayments. o
