EIB Approves PLN 1 Billion Loan to Support Sustainable Urban Projects Across Polish Cities

EIB Approves PLN 1 Billion Loan to Support Sustainable Urban Projects Across Polish Cities

(IN BRIEF) In 2024, the European Investment Bank (EIB) approved over PLN 1 billion (around €274 million) to support sustainable urban development in Polish cities, including Kielce, Radom, Rybnik, and Chorzów. This financing aims to improve urban infrastructure, transport systems, and environmental sustainability. Kielce is set to receive PLN 224 million, which will fund projects such as the modernization of the central square and investment in public transportation. The EIB has been providing continuous support for medium-sized cities in Poland, and this loan is part of their broader efforts to enhance the quality of life and foster long-term economic growth. The EIB’s total support for Polish cities has reached €7.89 billion since 2022.

(PRESS RELEASE) LUXEMBOURG, 7-Feb-2025 — /EuropaWire/ — In 2024, the European Investment Bank (EIB), the lending arm of the European Union, approved over PLN 1 billion (approximately €274 million) in loans to support sustainable urban development in Polish cities including Kielce, Radom, Rybnik, and Chorzów. Talks with additional medium-sized Polish cities are currently underway, with the goal of further enhancing urban infrastructure, transport, and environmental initiatives across the country.

The EIB has provided PLN 224 million in financing to Kielce, a city in southeastern Poland, to foster sustainable urban growth. The first tranche of PLN 112 million will fund projects in urban infrastructure, transport, and environmental sustainability. This is part of a broader framework loan aimed at improving climate and environmental policies in the region.

“Promoting the dynamic growth of medium-sized cities is one of the EIB’s top priorities. As the EU’s climate bank, we support the modernization and expansion of critical urban infrastructure, focusing on climate and environmental projects, particularly in cohesion regions,” said Teresa Czerwińska, EIB Vice-President, during a visit to Kielce. “This loan will allow Kielce to enhance its green spaces, transportation network, and sports facilities, benefiting the community and contributing to a higher quality of life, particularly for residents outside the largest urban centres.”

Kielce will use this long-term financing, which will also help fund projects that qualify for EU grants, to further modernize the city. The city’s total investment plan amounts to PLN 761 million, which includes the renovation of the central square, the creation of a business incubator, and a major investment in public transport, including the addition of a new bus fleet. The second tranche of funding is expected to be agreed upon soon.

Since 2022, the EIB has signed 24 financing agreements totaling more than €1.7 billion with cities and municipal companies in Poland. Its overall support for sustainable urban development in Poland has reached €7.89 billion over the last three years. Along with large cities, the EIB has focused on supporting medium-sized cities with populations between 100,000 and 250,000 residents.

Chorzów’s Mayor, Szymon Michałek, praised the EIB partnership, stating, “This loan will help us make critical investments in urban infrastructure and environmental protection. It will improve our residents’ quality of life and enhance Chorzów’s competitiveness regionally.”

In Radom, EIB funds are being used for various projects, including the construction of nurseries and social housing, creating green spaces, promoting sustainable mobility, and improving the energy efficiency of public buildings. Mayor Radosław Witkowski highlighted the economic and developmental benefits of the partnership, adding, “This collaboration with the EIB will help Radom continue growing in line with the expectations of our residents.”

Piotr Kuczera, Mayor of Rybnik, also expressed gratitude for the EIB’s support, noting that the financing is contributing to the city’s environmental initiatives, making it a greener and more attractive place for residents.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the EU, and the Capital Markets Union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024. Nearly two-thirds of which was allocated to tackle the climate crisis and protect the environment. Almost half of the invested funds were allocated in cohesion regions, while €17.2 billion was earmarked specifically for the sustainable development of cities and regions. In Poland, EIB support for economic and territorial cohesion last year amounted to €5 billion, while investments in the development of cities and regions reached almost €2.4 billion. The EIB Group will soon share the full results of its activities in Poland.

Media contact:

Gabriela Baczyńska
g.baczynska@eib.org
+352 4379-83852

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank