Financing of the Biscay Transport Consortium

Law no. 44/75 calls for the financing of the Bilbao Metropolitan Railway to be done in the following manner:

• State: 2,000,000,000 pesetas
  
• Provincial Government: 1,000,000, 000 pesetas
  
• City Councils within the Biscay Transport Consortium: 1,000,000,000

The rest of the financing will be borne by the Consortium itself by taking on the credit necessary whose amortization will be brought about by passenger use.

In 1980, and as a result of powers being transferred over to local administration, the Basque Government take the place of the Central Spanish Government with the following financing arrangements

• 50% Basque Government
  
• 25% Biscay Provincial Government
  
• 25% by member City Councils of the Consortium

In 1986, the Investment Plan for the Plentzia-Casco Viejo branch line was drawn up. Since such a huge investment had to be made, the Biscay Provincial Government underwrote the debt of the city councils, thereby establishing the following financial arrangement:

• 50% Basque Government
  
• 50% Biscay Provincial Government

Subsequently, this underwriting of city council debt was extended to include the Casco Viejo-Bolueta branch line.

The latest financing plans are based on the philosophy of financing investment wholly by borrowing and that the cash infusion from the Basque Government and from the Biscay Provincial Government should go towards defraying the financial burden and overheads over the years.

By going into debt, different types of operations have been launched:

• Issue of Metro stock. It is listed on the Stock Exchange
  
• Borrowing from the European Investment Bank
  
• Issue of Metro bonds
  
• Concerted credits