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MPS Capital Services, the Corporate and Investment Bank of Gruppo Montepaschi, has acted as lead arranger, custodian bank and agent bank for the €166 million refinancing of a public private partnership for construction and management of lines 2 and 3 of Florence tramway system.
MPS Capital Services provided with €38 million, Cassa Depositi e Prestiti with €98 million and Banca IMI with €30 million.
The total investment for the project will be approximately €310 million.
France's RATP already manages Line 1 of Florence tramway, which is already in operation, and Paris metro.
The Florence tram project is the first urban transport scheme to be implemented in Italy under a PPP framework, using the "Merloni law promotore concept". With the Merloni law promotore concept, a private enterprise, defined as the "promoter", can submit a proposal to a local body which has put a list of works out to tender. If the proposal is accepted, it becomes of public interest and forms the basis of the tender.
Line 2 will run from the airport to the new Florence High-speed rail station and then to Santa Maria Novella railway station, where it will interchange with line 1. From that point the line run through the city center in two different branches, also serving the Duomo in the initial planning.
Line 2 will be 7.5 km (4.7 mi) long and will be fundamental in connecting the Airport to the new High-speed rail station and in serving the city center, which is planned to become mainly pedestrian.
Line 3 will run from Careggi Hospital in the north to Santa Maria Novella railway station, where it will interchange with Line 1 and 2. The line will serve the northern metropolitan area of Florence.
The new tram network, once put into operation, will move about 37 million users per year.
Works for the project started in 2005, they were then interrupted to enter into a route redefinition phase. After the signature of this agreement, the project seems to move finally into its implementation phase.