The European Investment Bank (EIB) has agreed to provide the Czech Republic with a loan of Kč5bn ($232m), to support the upgrade of the country’s railway infrastructure.
The Czech Ministry of Finance will distribute the funds via the State Fund for Transport Infrastructure to the national rail infrastructure manager, Správa železnic, which will oversee the execution of the project.
The loan is part of an arrangement in which the EIB anticipates providing up to Kč55.3bn ($2.5bn) in combined financing and technical support for Czech railway infrastructure between 2023 and 2027.
Some of this funding will be supplemented by grants from the European Commission’s Just Transition Mechanism, which has allocated nearly Kč800m ($34.8m) to transport projects in Moravia-Silesia, Ústí nad Labem, and Karlovy Vary.
Upgrades will focus on both regional railway lines and those forming part of the European Union’s Trans-European Transport Network (TEN-T), with work scheduled for completion by 2030.
The TEN-T network, which is central to the project’s focus, aims to improve connectivity, interoperability and sustainability across the EU’s member states.
Správa železnic will direct the investment towards renewal and repair of selected rail routes, as well as the acquisition of new maintenance vehicles and equipment.
The planned improvements include updates to drainage systems and bridges, intended to strengthen the network’s capacity to operate under varying weather conditions.
Správa železnic director general Jiří Svoboda said: “The loan from the European Investment Bank will enable us to continue the systematic modernisation of the Czech railway network.
“We are investing in projects that bring concrete improvements – the increased capacity of lines made possible by their reconstruction allows us to respond to the growing interest in rail travel from passengers while also meeting the demands of freight transport.”
In addition to financing, the EIB continues to offer advisory services to the Czech Ministry of Transport and Správa železnic.
For nearly two decades, EIB Advisory has contributed to the development of high-speed rail corridors, a planned rail link to Prague airport, and strategies for the European Rail Traffic Management System.
The advisory role also extends to national transport planning and project evaluation frameworks.
Comission Regional and Urban Policy Directorate-General for Regional and Urban Policy director Emma Toledano Laredo said: “The EU’s Just Transition Mechanism is supporting people in the Czech coal regions as they move forward towards a new, carbon-free future. 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.”
The Czech railway system has a total length of 9,463km, with approximately one-third electrified.
The number of train passengers in the country has risen over recent years, excluding the period affected by Covid-19, which is attributed to continual improvements in infrastructure, expanded international connections with Austria and Slovakia.
