Ústí nad Labem Water Modernisation Project Receives €14 Million EU Grant and €56 Million EIB Loan

Ústí nad Labem Water Modernisation Project Receives €14 Million EU Grant and €56 Million EIB Loan

(IN BRIEF) The European Union and the European Investment Bank are supporting a €77 million modernisation programme for water infrastructure in the Ústí nad Labem Region of north-western Czechia. The financing combines a €14 million EU grant with a €56 million EIB loan under the Public Sector Loan Facility of the Just Transition Mechanism. Implemented by Severočeská vodárenská společnost, the project will upgrade water treatment plants, wastewater facilities, distribution infrastructure, water mains and storage reservoirs, while eliminating untreated sewer outfalls. It is expected to improve access to safe drinking water for around 300,000 inhabitants. The project will also support the region’s transition away from coal-based industry, improve water service efficiency, reduce water losses, enhance wastewater treatment and deliver environmental benefits for the Bílý Potok Brook and Elbe River catchments, including cross-border benefits linked to drinking water supplies for Dresden.

(PRESS RELEASE) LUXEMBOURG, 15-Jul-2026 — /EuropaWire/ — The European Union is supporting a major investment programme to modernise water infrastructure in the Ústí nad Labem Region of north-western Czechia, with the aim of improving local water management, strengthening public health protection and supporting the region’s long-term transition away from coal-based industry.

The project has an estimated budget of €77 million and is being financed under the Public Sector Loan Facility of the Just Transition Mechanism. The support combines a €14 million EU grant with a €56 million loan from the European Investment Bank.

The investment will be implemented by Severočeská vodárenská společnost, the Czech water utility company. The project focuses on a region undergoing structural transformation after decades of reliance on mining and heavy coal-based industry.

Planned works include the reconstruction of water treatment plants and wastewater treatment facilities, upgrades to water distribution infrastructure, modernisation of water mains and storage reservoirs, and the removal of untreated sewer outfalls.

The project is expected to improve access to safe drinking water for around 300,000 inhabitants. It will also strengthen water quality, improve the reliability of local water services and support better public health protection.

Beyond its social benefits, the investment is intended to support the economic transformation of the Ústí nad Labem coal region by contributing to a more sustainable and resilient development model. It will improve the efficiency of water services, reduce water losses and enhance the performance of the regional water network.

The project will also deliver environmental benefits by improving wastewater treatment and eliminating untreated sewer outfalls, reducing pollution in local waterways. The improvements will benefit the Bílý Potok Brook and Elbe River catchments in the Ústí nad Labem Region, supporting ecological conditions and biodiversity.

As the affected waterways also supply drinking water to Dresden in Germany, the project is expected to generate cross-border environmental benefits.

The investment is also expected to support climate mitigation, with estimated CO₂ emissions savings of around 1,300 tonnes per year. This is equivalent to removing approximately 300 cars from the road each year or offsetting the annual carbon footprint of around 280 EU residents.

Bronislav Špičák, Chief Executive Officer of Severočeská vodárenská společnost, said the secured funding will help the company take better care of its water infrastructure and introduce modern technologies.

He said the project will also help the utility adapt to stricter legislation and new challenges in the water sector, including energy efficiency, stronger cyber and physical security, responsible water management and climate change adaptation.

Emma Toledano, Deputy Director-General for Programme Implementation at the European Commission’s DG REGIO, said supporting regions most affected by the climate transition is central to the European Commission’s commitment to a fair transition.

She said the project demonstrates how EU cohesion policy is helping regions such as Ústí nad Labem build a more resilient and sustainable future, supported by the Just Transition Fund and the Public Sector Loan Facility.

Paloma Aba Garrote, Director of CINEA, said the project shows how EU support can strengthen regional water services and deliver long-term benefits for citizens, the environment and the local economy.

She added that resilient water infrastructure will improve water safety and security, protect the environment and support the region’s transition towards a more sustainable future.

Marek Mora, Vice President of the European Investment Bank, said the Ústí nad Labem Region is a long-standing EIB partner, with existing cooperation already under way on urban revitalisation.

He said the new €56 million loan will help modernise the region’s water treatment infrastructure, making it safer, more reliable and better prepared for the future.

Mora added that cohesion is central to the EIB’s role in supporting a just transition across Europe, helping regions invest in modern infrastructure, strengthen competitiveness and improve quality of life.

Background information

The Public Sector Loan Facility (PSLF) was established by the European Union as one of the three pillars of the Just Transition Mechanism (JTM) to ensure that the transition towards climate neutrality leaves no region behind. By supporting investments in territories facing the most transition challenges, the PSLF contributes to a fair transition for all, while strengthening competitiveness.

The PSLF supports public and public-mandated entities in implementing investments that address the social, economic and environmental impacts of the climate transition in the most affected EU regions. It combines loans from the European Investment Bank (EIB) with grants from the European Commission, enabling projects aligned with the Territorial Just Transition Plans (TJTPs) prepared by EU Member States.

The first call for proposals, organised around ten intermediate cut-off dates and implemented based on national allocations, was open from 19 July 2022 to 31 December 2025. Read about its results in the CINEA article on  Advancing the Just Transition in Europe: Results of the first PSLF call for proposals – European Climate, Infrastructure and Environment Executive Agency

Building on the first call, a second call for proposals was launched on 23 October 2025. The call is open to all EU Member States on a competitive basis, without pre-allocated national shares.

The implementation of PSLF has been entrusted by DG REGIO to CINEA.

DG REGIO   

The Directorate-General for Regional and Urban Policy (DG REGIO) is the 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 to assist 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.

EIB 

The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.

SEVEROČESKÁ VODÁRENSKÁ SPOLEČNOST

Severočeská vodárenská společnost a.s. (SVS) is the largest water utility company in the Czech Republic in terms of the volume of assets under its management. Among other things, it ensures wastewater collection and treatment, primarily for the residents of the Ústí and Liberec regions. On behalf of its shareholders—458 North Bohemian cities and municipalities—it has assumed responsibility for supplying the population with drinking water and for the collection and disposal of municipal wastewater. SVS is the 100% owner of the operating company Severočeské vodovody a kanalizace, a.s. As a result, the municipalities and cities of the North Bohemian region have had full control over their water supply and related utility operations since 2019.

Media Contact:

Vaclav Vohlidal
v.vohlidal@ext.eib.org

Press Office

+352 43791

SOURCE: European Investment Bank