The loan will be used to acquire 35 new LRVs, and will also help to finance the expansion of the city's 61km tram network, including the 1km extension of Line 7 to Graz Medical University. Construction is due to start next May and the project will be completed in October 2016.

"This expansion programme represents a major step towards the development of an environmentally sustainable transport system, as Graz, with its particular climate, must make an all-out effort to control particulate emissions," says Nagl. "This can only be achieved by increasing public transport and offering modern and efficient facilities."