KfW IPEX-Bank supports modernisation of public passenger transport in Bochum and Gelsenkirchen

KfW IPEX-Bank is providing a EUR 25 million loan to finance the procurement of 15 new trams for Bochum-Gelsenkirchen Straßenbahnen AG (Bogestra). The financing with a term of 20 years will be refinanced through the KfW Programme “IKU – Investment Loans for Municipal and Social Enterprises”, which supports investments in municipal and social infrastructure and is designed for companies in which municipalities are the majority shareholders. The Variobahn trams will be delivered in 2014 and 2015 and used in the city areas of Bochum, Gelsenkirchen and Herne.

The trams are part of a framework agreement signed in 2005 between Bogestra and the manufacturer Stadler Pankow GmbH for the delivery of a total of 30 trams and the option for another 15 vehicles built at the production site in Berlin. The financing closed in May marks the second joint transaction between Bogestra and KfW IPEX-Bank to finance trams.

With the loan KfW IPEX-Bank is supporting the expansion and modernisation of public passenger transport thus helping to shift traffic from roads to rail for the benefit of the environment. Particularly in a densely populated area such as the Ruhr Basin KfW IPEX-Bank is thus contributing to environmental and climate protection.