EIB Extends €42.8 Million Loan to Ústí nad Labem for Sustainable Infrastructure and Green Development

EIB Extends €42.8 Million Loan to Ústí nad Labem for Sustainable Infrastructure and Green Development

(IN BRIEF) The EIB has extended a €42.8 million loan to Ústí nad Labem for crucial infrastructure upgrades, including energy, transport, and social services. This is part of the EU’s larger goal of promoting sustainable urban development. The loan is also intended to reduce emissions and support the city’s efforts to become climate-neutral by 2050. Mayor Petr Nedvědický and EIB Vice-President Kyriacos Kakouris emphasized the importance of this funding in ensuring long-term growth and improved quality of life for the city’s residents.

(PRESS RELEASE) LUXEMBOURG, 6-Feb-2025 — /EuropaWire/ — The European Investment Bank (EIB) has extended a €42.8 million loan to the Czech city of Ústí nad Labem, located in the north-west of the country, to fund critical upgrades to its infrastructure, including building, transport, and energy renovations. This initiative is part of a wider European effort aimed at promoting sustainable urban development.

With a population of approximately 90,000 and positioned near the German border, Ústí nad Labem is an industrial hub. The EIB’s loan will enable the city to modernize its infrastructure, enhance energy efficiency, and implement clean energy solutions. These changes will also improve services in the education and social care sectors, vital for the community’s overall well-being.

As part of the broader EU goal of making cities climate-neutral by 2050, the EIB loan represents a step forward in promoting a sustainable future. Kyriacos Kakouris, EIB Vice-President, highlighted that the project will not only reduce greenhouse gas emissions but also improve the quality of life for residents by investing in energy-efficient solutions.

A portion of the loan will fund improvements at the municipal zoo, including upgrades to animal enclosures and visitor areas, as well as enhancing water and energy management systems. These actions will contribute to climate action efforts by reducing emissions.

The loan comes from the EU’s Just Transition Mechanism (JTM), a program designed to support regions undergoing transitions to climate-neutral economies. With a combination of EIB loans and European Commission grants, the JTM aims to mitigate the social and economic impacts of this transition in the most affected areas. For Ústí nad Labem, the EIB’s contribution covers up to 72% of the total project cost, with additional funding from the EU and the city itself.

Ústí nad Labem’s development strategy aligns with the EIB’s objectives of supporting sustainable urban renewal. The EIB will also offer expertise and advisory services to help the city efficiently manage investments in infrastructure, energy, and water management.

Mayor Petr Nedvědický of Ústí nad Labem expressed his enthusiasm about the partnership with the EIB, noting that this funding is vital for advancing the city’s transformation, particularly in the areas of public housing, mobility, and energy. He looks forward to further cooperation with the EIB, which could bring additional funding opportunities, such as through the ELENA program.

This EIB loan serves as a catalyst for Ústí nad Labem’s sustainable growth, helping the city invest in essential public services and contributing to the long-term goal of a climate-neutral future.

Background information

About the EIB and Czechia

The European Investment Bank (EIB) is the long-term lending institution of the European Union. It finances investments contributing to EU policy goals. The EIB Group invested €2.47 billion in Czechia in 2024, supporting regional development and boosting economic resilience while also enhancing environmental sustainability and improving quality of life.

About PSLF and the Just Transition Mechanism

The Public Sector Loan Facility aims to alleviate the social and economic effects of the transition towards climate neutrality in the EU regions. This blending facility combines loans from the EIB with grants from the European Commission to help mainly public sector entities in the most hard-hit EU regions, which are identified in the territorial just transition plans, to mobilise additional public investments and meet their development needs in the transition towards climate neutrality. The first PSLF call for proposals was launched on 19 July 2022 with ten intermediate cut-offs until the end of 2025. There are three cut-off dates per year planned until the end of 2025. A second call for proposals will be launched in 2026.

To find out more about PSLF and PSLF-funded projects, please visit the CINEA website.

CINEA

The European Climate, Infrastructure and Environment Executive Agency (CINEA) is an executive agency established by the European Commission to implement parts of EU funding programmes for transport, energy, climate action, environment, maritime fisheries and aquaculture.

CINEA aims to support its beneficiaries, establish strong partnerships, deliver high-quality programme and project management, foster effective knowledge-sharing and create synergies between programmes, to support a sustainable, connected and decarbonised Europe.

Media Contact:

Katarina Karmazinova
k.karmazinova@ext.eib.org
+352 4379 – 70217

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank