EIB Supports Czech Rail Upgrades with €466 Million Loan to Enhance Sustainability and Safety

EIB Supports Czech Rail Upgrades with €466 Million Loan to Enhance Sustainability and Safety

(IN BRIEF) The EIB is loaning €466 million to the Czech Republic to upgrade railway infrastructure as part of a larger European effort to improve rail services and meet climate goals. The funding will support key projects such as the installation of the European Rail Traffic Management System (ERTMS) and the creation of safer level crossings, helping to modernize the Czech railway network and encourage a shift towards sustainable transport. The loan also funds the reconstruction of railway stations and supports local economic revitalization.

(PRESS RELEASE) LUXEMBOURG, 6-Feb-2025 — /EuropaWire/ — The European Investment Bank (EIB) has granted a €466 million loan (equivalent to 11.75 billion Czech korunas) to support the modernization of key railway lines in the Czech Republic. This funding aims to enhance the country’s rail infrastructure, contributing to Europe’s overarching efforts to improve rail services and promote sustainability in transportation. The loan will facilitate the implementation of advanced technological solutions, including the European Rail Traffic Management System (ERTMS) and the creation of safer level crossings across vital rail routes. These improvements will span lines that connect the Czech Republic to Austria and Poland, part of the Trans-European Transport Network (TEN-T).

The Czech Ministry of Finance will direct the funds to Správa železnic, the national railway infrastructure administrator, to oversee the planned upgrades. The project is part of a broader initiative, which includes €1 billion in EIB-approved financing in 2023 for Czech railway enhancements. These efforts aim to boost the efficiency and safety of rail travel while encouraging a shift from road transport, in line with broader climate goals.

EIB Vice-President Kyriacos Kakouris emphasized that this investment reflects the bank’s commitment to supporting sustainable infrastructure development. He noted that modernizing the railway system not only enhances service quality but also helps foster a greener future. The upgrades, which include 40 individual projects, are slated for completion by the end of 2028 and will help deepen regional cohesion across the Czech Republic.

Czech Finance Minister Zbynek Stanjura remarked that the loan agreement represents a significant milestone in the long-term partnership between the Czech Republic and the EIB, providing favorable financing terms for key infrastructure projects. Additionally, Správa železnic will be able to leverage EU subsidies through the European Just Transition Mechanism, further boosting the efficiency of these investments.

Czech Transport Minister Martin Kupka expressed pride in the country’s contribution to the European rail network, underscoring that the support from the EIB is a testament to the high quality of Czech rail projects. The funds will also aid in the reconstruction of eight railway stations across the Czech coal regions, which have been selected for further funding under the European Commission’s Public Sector Loan Facility, part of the Just Transition Mechanism. These renovations will enhance passenger comfort, improve accessibility, and boost local economies through repurposed spaces.

Background information

About the EIB and the Czech Republic

The European Investment Bank (EIB) is the long-term lending institution of the European Union. It finances sound investments contributing to EU policy goals. 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. There are 3 cut-off dates per year planned until the end of 2025. The next call for proposals will be launched in the second half of 2025.

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

About DG REGIO

The Directorate-General for Regional and Urban Policy (DG REGIO) is a department of the European Commission responsible for EU policies on regions and cities. It develops and carries out the Commission’s policies on regional and urban policy. It assists the economic and social development of the developed and less developed regions across the European Union.

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 and maritime fisheries and aquaculture.

CINEA aims is 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

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SOURCE: European Investment Bank