THE European Investment Bank (EIB) is lending the Czech Republic Koruna 5bn ($US 238.9m) for a project to upgrade regional lines and sections of the Trans-European Transport Network (TEN-T) that is due for completion by 2030.
The Ministry of Finance will pass the EIB funding via the State Fund for Transport Infrastructure to infrastructure manager SŽ, which will also use part of the funding to purchase new track maintenance vehicles and equipment.
The upgrade programme will cut journey times and enhance the competitiveness of rail freight. Work will include upgrades to drainage systems and bridges, improving the network’s resilience to climate change.
The new loan is part of a cooperation framework under which EIB will provide up to Koruna 55.3bn in financing and technical assistance for Czech rail infrastructure between 2023 and 2027.
The loan has also enabled grants from the European Union’s (EU) Just Transition Mechanism totalling Koruna 800m, which will support projects in the coal mining regions of Moravia-Silesia, Ústí nad Labem and Karlovy Vary, enabling areas most affected by the transition to a climate-neutral economy to invest in sustainable transport.
“The EU’s Just Transition Mechanism is supporting people in the Czech coal regions as they move forward towards a new, carbon-free future,” says Emma Toledano Laredo, director at the European Commission’s Directorate-General for Regional and Urban Policy.
“A key factor for this transformation is investing in a modern railway network, which will cut travel times, reduce emissions, and make trains a more attractive option for everyday travel.”
“We are investing in projects that bring concrete improvements - the increased capacity of lines made possible by their reconstruction allows us to respond to growing passenger demand while also meeting the demands of freight transport,” says SŽ director general, Jiří Svoboda.
“A key challenge for the coming years will be the electrification of additional lines.”
Through its consultancy arm EIB Advisory, EIB has been working closely with the Ministry of Transport and SŽ to develop major rail projects including new high-speed lines and a rail link to Prague Airport, as well as a national ERTMS deployment strategy and public-private partnership (PPP) projects in the rail sector.
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