EIB Funds French Rail Overhaul: €1B+ Investment Approved

EIB invests EUR 500 million in Auvergne-Rhône-Alpes rail, funding new trains and refurbishment. This boosts capacity and supports France’s rail market liberalization.

January 27, 2026 12:38 pm

🛑 Key Takeaways:

The European Investment Bank (EIB) is proposing EUR 500 million to finance a regional rail fleet overhaul in France’s Auvergne-Rhône-Alpes region, with a total project cost exceeding EUR 1 billion.
The project includes 10 new Alstom EMUs, 3 dual-mode electric/hydrogen units, and the mid-life refurbishment of 169 existing trains.
This investment aims to increase capacity in the congested Lyon rail hub and supports France’s rail market liberalisation by making rolling stock accessible to multiple operators.

LYON, FRANCE – The European Investment Bank (EIB) is considering a EUR 500 million loan for a comprehensive rolling stock modernization project in the Auvergne-Rhône-Alpes region. The initiative, with a total eligible cost of over EUR 1 billion, will fund the acquisition of new electric and hydrogen-powered trains and the refurbishment of a significant portion of the existing fleet to improve regional passenger services.

Category	Specification / Detail
Total Project Cost	Over EUR 1 billion
Proposed EIB Financing	EUR 500 million
Key Stakeholders	EIB, Auvergne-Rhône-Alpes Region, SNCF Voyageurs, Alstom
New Rolling Stock	10 Alstom Regio2N EMUs, 3 dual-mode electric/hydrogen MUs
Fleet Refurbishment	169 existing electric and dual-mode units
Alstom Contract Value	EUR 125 million for 10 Regio2N units
Delivery Schedule	June – October 2027 (for the 10 new Alstom units)

Operational & Technical Details

The financing supports a multi-faceted fleet upgrade. SNCF Voyageurs, acting on behalf of the region, has placed a EUR 125 million order with Alstom for 10 Omneo Regio2N double-decker trains. These units will join the region’s existing fleet of 59 Regio2N trains, increasing standardisation and operational efficiency. The project also includes the forward-looking acquisition of three dual-mode electric/hydrogen multiple units, signaling a strategic move towards zero-emission propulsion on non-electrified lines. A major component of the investment is the mid-life renewal of 169 existing fleet units. To support this expanded and modernized fleet, a new maintenance workshop will be built at the existing depot in Clermont-Ferrand.

Market Impact Analysis

This investment directly targets rail capacity constraints, particularly within the critical Lyon rail hub. The introduction of new, higher-capacity trains will be followed by a strategic redistribution of existing rolling stock to bolster services across other parts of the region. Critically, the project is structured to support the ongoing liberalisation of France’s regional rail market. By creating a modernised, accessible fleet, the region facilitates a more competitive environment where different rail operators can bid for service contracts. For the EIB, this project aligns with its broader sustainable transport strategy, which includes recent financing for EV charging infrastructure, demonstrating a consistent, multi-modal approach to decarbonising European transport.

FAQ: Quick Facts

What is the total value of this project?

The total eligible project cost is over EUR 1 billion. The EIB is proposing to finance EUR 500 million of this amount. A specific order for 10 Alstom trains is valued at EUR 125 million.

When will the new trains be delivered?

The delivery of the 10 new Alstom Regio2N trains is scheduled to take place between June and October 2027.