In Wroclaw, Poland, the first horse-driven tram was inaugurated in the late 1800s, connecting different neighbourhoods to the centre and making it one of Poland’s oldest tram networks.

Electric trams were introduced after some 20 years and have been used by citizens and tourists ever since.

The city’s tram network renovation started in the 1950s, with a series of modernisation works undertaken. Still today, the city’s authorities are looking to improve public transport services to attract even more users and reduce the city’s overall environmental impact.

Miejskie Przedsiebiorstwo Komunikacyjne Sp. z o.o. we Wroclawiu (MPK), the municipal public transport company and the sole operator of the tram infrastructure in the City of Wroclaw, wants to invest in new tram and bus services, including through the replacement and modernisation of existing trams.

MPK must raise external funds to finance its investment plans. To attract investors, such as the EIB, MPK needs to provide a sound long-term financial forecast model based on verified assumptions.

MPK asked the Advisory Hub to prepare a comprehensive financial model and a financial analysis to confirm MPK’s capacity to repay an EIB loan, with a potential guarantee from the European Fund for Strategic Investments.

Our experts helped prepare and present the model, including a sensitivity analysis.

The Hub’s advisory support will also help the promoter find additional sources of financing for this important investment. The citizens of Wroclaw will enjoy quieter, cleaner and more efficient urban transport, with less traffic and better air quality.