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Large-scale regional projects : Financial issues

On 14th October 2010, the Regional Council and the French State signed a memorandum determining the principles for the funding and creation of three large-scale projects for Reunion Island :

  • Creation of a totally safe New Coastal Road,
  • Creation of the Trans Éco Express (bus network),
  • Funding of airport-related investments.

These projects represent an overall investment of €2.2 billion, including €1.2 billion of national public funding by the French State and ERDF funding, with €1 billion funded locally.

The agreement also enables the Regional Council to benefit from a loan of €500 million from the Caisse des Dépôts (CDC - Deposits and Consignments Fund) to finance the projects covered by the memorandum. In order to improve access to employment for local job-seekers, a ‘large-scale projects’ procedure (Objective : Jobs & Training) has also been provided for.

IMPLEMENTATION OF COMMITMENTS

COASTAL ROAD :

  • A €219.24 million grant allocated by the French government to the Regional Council (agreement signed with the AFITF on 29/03/12),
  • An €11 million ERDF grant allocated to the Regional Council in 2011 to cover project management studies,
  • This large-scale project application for European funding (ERDF) was declared admissible by the European Commission in March 2013 for a maximum amount of €80m, as part of the ERDF European Operational Programme for 2007-2013.

TEE (Trans Éco Express) : REUNION’S NEW PUBLIC TRANSPORT NETWORK

  • A €4m grant allocated by the State to the Regional Council (agreement signed with AFITF on 21/10/11) for the creation of a road connection on the RN1 dual carriageway between Saint-Louis and Saint-Pierre,
  • A €7.1m ERDF grant allocated to the Regional Council for use by public transport of the old Rivière Saint-Etienne bridge.

AIRPORTS :

  • On 09/12/12, a loan guarantee of 50% of the €45 million (€22.5 million) loan was granted by the Regional Council to ARRG (the airport company), enabling work to commence in 2013.
  • A €2m Regional Council subsidy granted on 21/10/10 to the Syndicat Mixte de Pierrefonds for carrying out transformation work on the airport (a cost of €4.2m, with 50% ERDF participation).

CDC LOANS ON SAVINGS FUNDS :

A Memorandum of Understanding was signed on 06/12/11 for use of the loan based on savings funds for a maximum period of 40 years, distributed as follows :

  • €400m will be allocated to financing the New Coastal Road ;
  • €50m will be allocated to the Regional Council’s share of the financing of infrastructures related to the TEE ;
  • €50m will be allocated to the airport investment program.

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