Spain: EIB and Adif sign €350 million loan to invest in improving and updating conventional and high-speed railway infrastructure

This article is published in association with European Investment Bank.

• This investment will strengthen the safety, sustainability and resilience of railway infrastructure and networks in Spain.
• The loan highlights the EIB Group’s commitment to a more sustainable transport model, such as railways, and contributes to its strategic priorities of consolidating its position as the EU Climate Bank, and to further economic, social and territorial cohesion.
• The loan will allow Adif and Adif AV to undertake the renewal of key components in the railway infrastructure and the updating of communications systems, among other actions.
• As part of the financing operation, the EIB will work with Adif to support the climate change adaptation of its infrastructures in the high speed and conventional networks by providing advice through EIB Advisory Services.

The European Investment Bank (EIB) and Adif AV have signed a €350 million loan to invest in conventional and high-speed railway infrastructure in Spain. Investments will target safety, sustainability and resilience, as well as renovation works and general improvements. As a result of this investment, a important number of projects will be undertaken across the country. This will improve the quality of services and make railway transport more attractive, furthering the use of more sustainable transport means.

Total investments supported by the project amount to over €830 million in investment. This will be used to update key components of the railway infrastructure, the upgrading of communications systems through interoperable technologies and the implementation of plans to improve resilience when operational and climate-related issues arise, minimising potential traffic disruptions.

On the high-speed network, the investment programme includes the installation of anti-fall safety barriers on roads, the improvement of drainage systems and access to technical installations and the installation of anti-vandalism modules, as well as the renovation of telecommunications, security and energy systems.

On the conventional network, the planned investment schemes incorporate, among others, a programme of removal of level crossings, renewal of tracks and other infrastructure elements, installation of telecommunications equipment, as well as the extension of the GSM-R (Global System for Mobile Rail Communications) system to more lines.

“The cooperation with the EIB is essential for Adif and Adif AV to continue to promote railways as a sustainable and resilient means of transport at the heart of the new mobility model demanded by the citizens. The loan signed today will enable us to maintain the highest quality standards already offered by our railway network to users, through a range of renovation and upgrading measures for the different railway systems”, said Pedro Marco de la Peña, President of Adif and Adif AV.

The loan highlights the EIB Group’s strong commitment to developing more sustainable transport solutions, such as railways, in full alignment with the Bank’s role as the EU Climate Bank. In addition, a significant part of the investment will take place and benefit cohesion regions – with per capita income below the EU average – thus improving connectivity with other regions as well as boosting economic and territorial cohesion. Therefore, the project also makes a significant contribution to the EIB Group’s strategic priority of contributing to economic, social and territorial cohesion.

“This new financing agreement with Adif – a strategic partner for the EIB – will enable important investments to be made in Spanish railway infrastructure, reinforcing its safety, resilience and sustainability,” said EIB Director General and Head of EU Lending and Advisory Jean-Christophe Laloux.“A safe and reliable rail network is essential to maintain the attractiveness of railways over more polluting forms of transport, with clear benefits for the economy and the environment.”

Within the context of this operation, the advisory services of the EIB, EIB Advisory, and Adif have put in place a strategic partnership with a strong focus on climate change adaptation for the conventional and high-speed networks. The aim is to better integrate climate change impact analysis, by assessing the costs and benefits associated to the relevant investments to improve the resilience of Adif infrastructure to climate events.

The EIB has enjoyed a long-term partnership with Adif. Cooperation between the EIB and Adif has led to investment operations to extend, maintain, modernise and ensure the safety of Spanish rail infrastructure. More recently, in July 2024, the EIB and Adif AV signed a €430 million loan to support the “Y vasca” high-speed rail line. This is a very significant project to improve rail links between the main Basque cities, a s well as with other Spanish and European cities. To date, the EIB has invested over €13.5 billion in high-speed rail in Spain.

Background information

European Investment Bank

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, consisting of the European Investment Bank and the European Investment Fund, reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. In total, the EIB Group signed €88 billion of new financing in 2023.

Adif AV

Adif Alta Velocidad leads the transition towards a new mobility model, more sustainable, integrating, multimodal, safe and intelligent, as the leading infrastructure investor in Spain. The company deploys railway network to complete high-speed axes and trans-European transport corridors. The liberalisation of passenger rail transport, digital transformation and a large-scale cultural change are some of the challenges faced by the company to consolidate the railway as the mode of transport of the 21st century. Adif AV is an entity belonging to the Ministry of Transport and Sustainable Mobility.