Polish transport operator for the city of Krakow, MPK, is set to receive a loan from the European Investment Bank (EIB) to replace its tramway fleet.

MPK will receive a loan of PLN376m (€86.9m) to purchase up to 90 low floor and low energy consumption trams.

A section of the loan will also be used to modernise existing vehicles.

Since 2010, EIB has awarded a total of PLN618m ($164.55m) in loans to MPK, including the latest financing.

European Investment Bank vice-president Vazil Hudak said: “This is the third loan over a decade granted by the EIB to MPK, the Krakow operator of public transport services, for the purchase of new rolling stocks or the upgrade of the existing ones.”

“The loan agreement with the EIB will allow MPK to pursue it fleet renewal plans.”

MPK has planned to invest PLN1bn ($270m) to replace its full tramway fleet with new low floor and energy saving units. The new financing from EIB is expected to support the strategy.

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MPK Krakow vice-president Mariusz Szałkowski said: “The loan agreement with the EIB will allow MPK to pursue it fleet renewal plans.

“In December, we plan to sign an agreement with the consortium formed by Stadler Polska and Solaris Bus & Coach SA for the purchase of 15 additional new tramways, as part of a framework agreement for 50 trams signed in January this year.

“Next year, in addition, we will launch the tender for the purchase of 40 more tramways.”

Last month, EIB confirmed $480m funding for the first line of Bogotá metro in Colombia. The first tranche of $56m was awarded in August.