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Financing the project

2 juillet 2014

The Matignon Agreements of October 14th 2010 set out and guarantee the funding conditions of this large-scale project by the French State and the European Union (State : €532m / VAT compensation fund : €248m / EU : €151m / Regional Council : €669m).
In 2011, the total cost of the program was fixed €1.66 billion by the Permanent Committee.

In May 2012, the Permanent Committee estimated cost of the project, confirmed by the project manager, at €1.499m (excluding VAT). A memorandum was signed with the Caisse des Dépôts et de Consignation (CDC - Deposits and Consignments Fund) on December 6th 2011, to set aside a loan of €500 million for projects under the Matignon Agreements, and a €450m financing offer was confirmed by the CDC for the New Coastal Road project on August 21st 2013. The French State allocated €242m in grants to the Regional Council of Reunion corresponding to the first financial section of the Agreements, of which €219m was granted by the AFITF agreement of March 29th 2012. The European Union approved the large-scale project ERDF application for the 2007-2013 program in May 2013, of which €51m has already been allocated for financing the project. With the opening of program authorizations up to €1.6 billion for the provisional budget of 2013, €133m has been set aside for the actual start of work within the provisional budget of 2014. The consulting firm KLOPFLER assessed the Regional Council’s multi-year investment program up to 2021 and concluded that the Regional Council’s balance forecast was both financially sustainable and respectful of the budget.