The European Investment Bank (EIB), KfW IPEX-Bank and NORD/LB have provided EUR189 million (US$205.89 million) to the local public transport authority Verkehrsverbund Mittelsachsen (VMS) in order to finance the expansion of public transport in the Chemnitz region, Germany.

The EIB’s share of this is EUR89 million (US$97.42 million). The consortium leader KfW IPEX-Bank and the account-holding bank NORD/LB will each provide EUR50 million (US$54.73 million). 

The EUR234.5 million (US$255.45 million) project includes financing, procurement and maintenance of 19 new all-electric regional tram-trains providing a better link to the Chemnitz inner-city network from the surrounding region. It also includes plans for building a new maintenance depot near Chemnitz central station for servicing the new trams and older public transport vehicles.

The new tram-trains will be delivered from 2025, with passenger services scheduled to start in 2026. About 5.3 million passengers are expected in the first year of operation.