EIB and Správa železnic Partner on €200 Million Investment to Strengthen Czech Railways and Climate Resilience

(IN BRIEF) The European Investment Bank (EIB) is providing a €200 million loan to the Czech Republic to upgrade its railway network by 2030. Managed by Správa železnic through the State Fund for Transport Infrastructure, the project will enhance both regional and TEN-T lines, modernize drainage systems and bridges, and introduce new maintenance vehicles. It will be supported by EU Just Transition Mechanism grants targeting regions most impacted by the energy transition. The investment aims to reduce travel times, expand electrification, and boost climate resilience while promoting rail as a sustainable transport mode. The EIB’s role also includes long-term advisory support on high-speed corridors, ERTMS deployment, and rail modernization strategy.

(PRESS RELEASE) LUXEMBOURG, 23-Oct-2025 — /EuropaWire/ — The European Investment Bank (EIB) has approved a €200 million (CZK 5 billion) loan to the Czech Republic to finance extensive improvements to the country’s railway infrastructure, with completion targeted for 2030. The funding, which will be channelled through the State Fund for Transport Infrastructure to the national rail infrastructure manager Správa železnic, will support upgrades to both regional railways and priority European Union Trans-European Transport Network (TEN-T) corridors.

The project includes the modernization of key lines, the repair of critical infrastructure such as bridges and drainage systems, and the procurement of new maintenance vehicles and equipment to ensure the long-term resilience of the rail network. These investments are expected to enhance rail safety, efficiency, and reliability, while reducing carbon emissions and travel times across the country.

“This initiative reinforces the strong cooperation between the EIB and the Czech Republic in delivering sustainable transport investments,” said EIB Vice-President Marek Mora. “By investing in safer, greener, and more efficient rail infrastructure, we are helping the country meet its climate goals and improve the travel experience for millions of passengers.”

The new loan forms part of the EIB’s broader cooperation framework, which foresees up to CZK 55.3 billion (€2.2 billion) in financial support and technical assistance for Czech railway modernization between 2023 and 2027. It will also leverage grants from the European Commission under the Just Transition Mechanism, with approximately CZK 800 million (€30 million) earmarked for projects in Moravia-Silesia, Ústí nad Labem, and Karlovy Vary — regions most affected by the shift toward a low-carbon economy.

According to Jiří Svoboda, Director General of Správa železnic, “The loan from the European Investment Bank will enable us to continue the systematic modernization of the Czech railway network. These projects deliver tangible improvements — expanding capacity, improving safety through ETCS systems, and supporting the electrification of more lines. Our partnership with the EIB confirms that Czech rail is evolving in the right direction.”

Emma Toledano Laredo, Director at the European Commission’s Directorate-General for Regional and Urban Policy, highlighted the broader regional impact: “The EU’s Just Transition Mechanism is supporting people in Czech coal regions as they move toward a carbon-free future. Investment in modern rail infrastructure is essential — cutting travel times, reducing emissions, and making rail a more attractive and sustainable transport choice.”

Beyond financing, the EIB continues to provide advisory support for Czech rail infrastructure. Over the past two decades, EIB Advisory has collaborated with the Ministry of Transport and Správa železnic on strategic projects including high-speed rail development, the planned Prague airport rail link, and national implementation of the European Rail Traffic Management System (ERTMS). This technical guidance has helped strengthen project planning, policy development, and the preparation of future public-private partnerships (PPP) in the transport sector.

Background information

The project focuses on upgrading lines that are part of the Trans-European Transport Network (TEN-T), a European Union initiative aimed at improving connectivity, interoperability and sustainability across member states. TEN-T corridors are essential for cross-border mobility and economic cohesion in the EU, linking major cities, ports and industrial hubs. More information about TEN-T can be found here.

The Czech rail network spans 9,463 route kilometres in total, including national and regional lines. A portion of this constitute the mainline network, and around one-third of the total network is electrified. Excluding the COVID-affected period, the volume of train passengers has steadily increased. This can be explained by enhancements in rail infrastructure and rolling stock, resulting in reduced travel times across many routes. New international connections to Austria and Slovakia, as well as improved competition for rail services, have also contributed to the growing popularity of rail travel in the country.

About the EIB and the Czech Republic

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its 27 Member States. It provides finance and expertise for sound and sustainable investment projects that contribute to EU policy goals. These include climate action, innovation, cohesion, energy security, and technological leadership. In 2024, the EIB Group signed €88.8 billion in new financing, supporting projects that promote prosperity, sustainability, and strategic autonomy across Europe and beyond. In 2025, the EIB Group’s financing ceiling was increased to €100 billion to accelerate investments in defence, energy grids, and Europe’s tech leadership. The EIB Group invested €2.47 billion (or CZK 63 billion) in the Czech Republic in 2024, supporting regional development and boosting economic resilience while also enhancing environmental sustainability and improving quality of life.

About PSLF and Just Transition Mechanism (JTM)

The Public Sector Loan Facility aims at alleviating the social and economic effects of the transition towards climate neutrality in the EU regions. It is a blending facility that combines loans from the EIB with grants from the European Commission to help mainly public sector entities in the most affected EU regions 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 10 intermediate cut-offs until the end of 2025.. The next call for proposals, covering the 2026-2027 period, will be launched on 23 October 2025.

The grant component under PSLF is implemented jointly by European Commission’s Directorate-General for Regional and Urban Policy (DG REGIO) and the European Climate, Infrastructure and Environment Executive Agency (CINEA). To find out more about PSLF and PSLF-funded projects, visit CINEA website.

About Sprava zeleznic

Správa železnic is the owner and provider of national and regional railway infrastructure owned by the state. Pursuant to Act on Rail Systems, Správa železnic provides operation of the nation-wide and regional railways owned by the state, their operability, modernization and development to the extent necessary to ensure the transport needs of the state and transport services. Správa železnic is the manager of assets comprising the railway infrastructure. Správa železnic is a member of UIC (International Union of Railways), CER (Community of European Railway and Infrastructure Companies) and other significant railway associations. To find out more visit the website.

EIB and Správa železnic Partner on €200 Million Investment to Strengthen Czech Railways and Climate Resilience

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