The European Investment Bank (EIB) has signed a loan agreement worth €115 million (£102m) to support the rollout of electric buses in Rotterdam.

Public transport provider RET will use the financing to buy 105 electric and 103 diesel-hybrid buses and install charging infrastructure for the vehicles, in addition to improving tram and metro tracks across the Dutch city.

The company plans to install a total of 32 charging points in bus depots and 17 chargers along the bus routes.

The project is part of the RET’s strategy to have only emission-free buses on the roads “far earlier than the national goal of 2030”.

Frank Hoevenaars, CFO of RET said: “This loan allows us to keep the cost of capital very low since we benefit from the low interest rate that the EIB offers.

“Over the coming years, we will gradually pay back the loan through our revenues, such as ticket sales and operating subsidies. This will allow us to stay true to our goal of keeping the costs for the traveller as low as possible.”

EIB Vice President Vazil Hudak added: “With its strategy to switch over to completely emission-free vehicles, Rotterdam is a front-runner and this loan is an important step in that process. The EIB is happy to support modern, comfortable transport for all citizens of Rotterdam, which will also contribute to better air quality in the city.”