Page 52 - U4SSC Compendium of practices on innovative financing for smart sustainable cities projects

SDG 13: Climate action with the use of carbon-neutral mode of transportation.

SDG 17: Partnership between local and national governments, public transport company and
public utility service.

People-first elements

• Access and equity: In 2019, the bus line frequentation was 3 153 434 clients for 572 452 km on
the line 23 (connects the Leman express Bachet de Pesay station to the Geneva international
airport in less than 40 minutes). The new fleet offers a more comfortable experience for
passengers and drivers.
• Economic effectiveness: The TOSA bus has a service life of 20 years instead of the normal 15
years for a diesel bus. The battery life is expected to last up to 10 years.

• Environmental sustainability and resilience: The fully electric bus fleet allows for a reduction
of 1 000 tons of CO per year. The electric bus produces 50 per cent less noise than the diesel
2
bus.
• Employment opportunities: The current operational line of 12 electric buses is expected to
grow to more than 200 by 2030 and employ more than 1 000 drivers, 12 per cent of which
today are women. The shift of employment skills from diesel to electric buses will generate new
employment opportunities.

Financial information

The project is paid by the State through investment; ABB through the development of the
infrastructure and technology; and TPG, which is responsible for the maintenance. A feasibility
study was conducted from 2011 to 2013, which involved a USD 5 million investment financed by
ABB. This study allowed for the start of a prototype and demonstrated the feasibility of the project.
The commercial line of electric buses came into operation at the end of 2017 to June 2018. The
commercial line cost USD 33 million, of which USD 16.5 million was paid for by the State and
covered general infrastructure such as charging polls. Another USD 16.5 million was covered
by TPG to buy the vehicles. ABB did not make any financial investment in the final project itself
but did invest in the prototype. A Swiss company, Hess AG, purchased all electrical equipment
necessary from ABB. In addition to State and TPG financing, a subsidiary from the Federal Office
of the Environment covered approximately 10 per cent of costs (USD 3.3 million of the USD 33
million project cost).

Payback terms: The repayment plan is over 20 years for the vehicles and infrastructure (this is the
normal depreciation of vehicles in Switzerland). The project is paid 50 per cent by the State budget
and 50 per cent by TPG through earnings from ticket sales. TPG finances the buses via a bank loan
with an interest rate plus amortization of 1.5 per cent.

40 Compendium of practices on innovative financing for SSC projects | January 2023