Czech Republic to step up railway improvements with EIB loan of €466 million

This article is published in association with European Investment Bank.

• EIB lends Czech Republic €466 million (11.75 billion Czech korunas) to upgrade key railway lines in country.
• Financing support to deployment of European Rail Traffic Management System (ERTMS) and creation of safer level crossings.
• Project highlights Europe-wide push for rail-service improvements.

The European Investment Bank (EIB) is lending the Czech Republic €466 million (11.75 billion Czech korunas) to upgrade key railway lines across the country, highlighting a push for safer, faster and cleaner transport. The EIB loan will cover technological and design improvements on Czech rail routes that are part of the Trans-European Transport Network (TEN-T) for trains and that connect to countries including Austria and Poland. 

The Czech Ministry of Finance will direct the EIB credit to the national railway infrastructure administrator, Správa železnic, which will manage the planned works.  These include deploying the European Rail Traffic Management System (ERTMS) on rail lines, retrofitting maintenance vehicles with ERTMS equipment and re-designing level crossings to make them safer.

The new financing is part of a circa €1 billion funding package approved by the EIB in 2023 for improving Czech railways. The overall goals are to make rail travel in the country safer and faster as well as to encourage a shift away from road transport as part of efforts to slash emissions that cause climate change.

“The new loan exemplifies our commitment to supporting sustainable transport infrastructure in the Czech Republic,” said EIB Vice-President Kyriacos Kakouris. “By modernising the railway network, we are not only improving the quality of rail services but also contributing to a greener and more sustainable future.”

The upgrades to be financed by the new EIB credit are due to be completed by the end of 2028 and include roughly 40 individual projects throughout the country. Their geographical spread reflects EIB and European Union goals to deepen regional cohesion as well as tackle globalwarming.

“Today’s signing of the loan agreement is yet another confirmation of our long-term cooperation with the EIB in modernizing the Czech transport infrastructure. The EIB provides an opportunity to finance major projects under favourable terms for the Czech Republic. By utilizing this loan, Správa železnic can secure subsidies for individual projects from the European Just Transition Mechanism, further enhancing the effectiveness of this financing method,” said Czech Finance Minister Zbynek Stanjura.

Rail upgrades in the Czech Republic and other European countries will help the EU meet a goal of becoming climate neutral by 2050.  

„I am very pleased that the EIB’s continued support confirms our readiness to contribute to the development of modern railways to ensure quality and environmentally friendly transport on both the national and trans-European transport network. At the same time, it proves the high quality of our projects also in comparison with other countries, ” commented Czech Transport Minister Martin Kupka.

This underlying EIB loan also supports the reconstruction of eight railway stations across all three coal regions of the Czech Republic, which is a set of projects that were also selected for a grant from the European Commission under the Public Sector Loan Facility, the third pillar of the Just Transition Mechanism.                                                           

“The eight railway stations spanning from the westernmost city of Cheb to Ostrava, the capital of the Moravia-Silesia region, have been selected for PSLF grants of more than EUR 20 million,” said Paloma Aba Garrote, Director of the European Climate, Infrastructure and Environment Executive Agency, or CINEA. “The reconstruction of these important public buildings will improve passenger comfort and safety, as well as accessibility for people with disabilities and improve energy efficiency. Moreover, some of these buildings will be refurbished and repurposed to accommodate new office and retail space, which will contribute to the economic revitalisation of the municipalities.”

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.