Czech region receives €97m EIB loan to procure electric trainsets

10 December 2020 (Last Updated December 10th, 2020 15:19)

Czech Republic's South Moravian region Jihomoravsky kraj has secured a CZK2.57bn (€97m) loan from the European Investment Bank (EIB) to procure new rolling stock.

Czech region receives €97m EIB loan to procure electric trainsets
EIB signs a CZK 2.57bn loan with the South-Moravia region to modernise passenger trains and increase the efficiency of railway services. Credit: ©Jihomorawsky.

Czech Republic’s South Moravian region Jihomoravsky kraj has secured a CZK2.57bn (€97m) loan from the European Investment Bank (EIB) to procure new rolling stock.

The financing will support a project that involves the acquisition of 37 electric trainsets for operations across the South Moravia region, primarily on S2 Letovice – Brno – Kfenovice and S3 Khzanov – Tisnov – Brno – Vranovice – Bfeclav routes.

The procurement of the new vehicles, which will replace the older rolling stock, is expected to improve service reliability and passenger experience.

EIB vice-president Lilyana Pavlova said: “Our partnership with Jihomoravsky kraj will strengthen the connection of the two major train lines in the region and make daily trips more efficient for many Czech citizens.

“By applying current environmental standards and promoting sustainable public transport, this project will contribute to supporting the transition of the Czech Republic to a low-carbon economy, in line with the objectives of our recently approved EIB Climate Bank Roadmap and the Transport Policy of the Czech Republic.”

South-Moravia regional governor Jan Grolich said: “I am glad that this project dedicated to the purchase of new trains has been completed, thanks to the cooperation between our region and the European Investment Bank.

“After all, train sets, which are almost half-a-century old, still run on rails in our region. Rejuvenation of this fleet is therefore a necessity.”

Since 1992, EIB has invested around €22.51bn in the Czech Republic to finance 185 projects.

The financial institution is also associated with the Czech Railway Infrastructure Rehabilitation project that seeks to modernise the national railway system.

Last month, EIB allocated €890m to fund the construction of a high-speed rail line section in Spain.

The financing will be used for building the 282km connection between Talayuela and Badajoz.