Our quality of life can be improved a lot when it is easy and fast to find public transport. Good public transport also helps fight climate change, lower air pollution and reduce road noise. Transport consumes one-third of the energy used in the European Union and is responsible for about a quarter of our greenhouse gas emissions.

Thionville Fensch, France, wants to help fight climate change by finding new methods of public transport. Its public transport network, called Citéline, is made up of more than 50 lines, and includes services for students and an on-demand service for people who have trouble using public transport. SMiTU, the city’s public transport authority, has launched Project Citézen, a plan to offer two transport lines with electric buses, adapted to the needs of residents. These two electric bus lines will lower CO₂ emissions and reduce bus noise, serving seven municipalities via 67 stations and providing transport for as many as 20 000 people a day. To set up the lines and the recharging equipment, many technical and financial options had to be taken into consideration.

To ensure full understanding of the risks and opportunities of operating electric bus lines, SMiTU asked the Advisory Hub to help devise the strategic, technical, legal, economic and financial cases of the project. Through a study conducted by SMiTU, in which it used the existing system to identify weaknesses and opportunities, Bank experts provided deeper insight on both the technical and financial structures available for the new plan. The feasibility study facilitated by the Advisory Hub’s experts also assessed options to renew the existing fleet with electric buses.

A team of technical consultants selected by the Advisory Hub analysed the geography of the municipality and route planning, the size of the buses and battery power, passenger load, depot location, and refuelling/recharging infrastructure to identify challenges and propose solutions. Additionally, our specialists identified financial solutions.

A business plan and a financial model were designed, taking into account aspects such as affordability and feasibility. The report looked into questions on ticket prices in relation to the budget, ensuring that the plan is affordable for the city and bus users.

The review conducted by the Advisory Hub helped shape many areas of the project to address the high level of upfront costs compared to diesel buses, one of the main hurdles in switching to electric buses. This work will lower operating costs over time and bring substantial benefits to the community and the environment.

With the help of the Hub, SMiTU improved its financing proposition, ultimately making the project eligible for Bank financing. The Hub’s support was also key in helping the city prepare an application for the CEF Transport Blending Facility, launched by the European Commission in 2019 to encourage private sector investors and financial institutions to support projects that enhance the environment and make transport more efficient.

Project Citézen will not only improve public transport, but it will also make it easier to travel between France and Luxembourg, encourage new travel practices, promote environmentally-friendly transportation and cut traffic congestion.