The European Investment Bank has approved a loan for refurbishing and upgrading rail networks in the Midi-Pyrénées region of France.
The €300m ($404m) loan will be used to upgrade 500km of rail network and to increase the frequency of services and reduce journey times.
Work will involve track renewal and dualling, reinforcement of engineering structures and the installation of new traffic management systems along the route between Toulouse and St Sulpice.
The project is part of the Midi-Pyrénées region's 2008-13 rail plan, worth €820m ($1.1bn), which is being delivered by French rail operator SNCF.
The plan is being funded jointly by French national railway owner RFF, the French Government and the European Union.
The Midi-Pyrénées Region will contribute €400m ($538.9m) towards the plan.