In a significant move towards revitalizing its Czech railway infrastructure, the Czech Republic signed a loan agreement with the European Investment Bank (EIB) on October 23, 2023, for a substantial CZK 24 billion, which is equivalent to approximately 992 million euros. This landmark loan is the largest ever secured by the Czech Republic from the EIB.
The funds from the EIB loan will be dedicated to a comprehensive modernization of the country’s railway network, aimed at bringing Czech railway transport into the 21st century. The ambitious modernization plan is slated to be completed by 2027 and will be overseen by the Czech Railway Administration.
Explaining the choice of EIB financing, Czech Minister of Finance, Zbyněk Stanjura, stated, “The use of a loan from the European Investment Bank is the most economical and efficient solution to obtain funds for a strategic investment such as the digitalization and automation of railway transportation, given the current level of the general government budget deficit.”
This extensive modernization project, according to EIB, is expected to enhance maximum speeds and capacity on various sections of the Trans-European Transport Network (TEN-T), ultimately improving connectivity between European Union regions.
The initiative comprises around 40 projects dispersed across different regions of the Czech Republic and is an integral part of the “Unified Railway Framework” plan for the years 2023 to 2027. Key objectives include enhancing the safety of level crossings, retrofitting maintenance vehicles with the European Rail Traffic Management System (ERTMS) equipment, and bolstering the railway company’s cybersecurity capabilities.
Additionally, railway stations and buildings will undergo renovations to improve accessibility for individuals with reduced mobility and those traveling with children. This holistic approach aims to make railway transport more efficient, secure, and user-friendly.
The loan facility agreement with the EIB represents the first tangible outcome of a Memorandum of Understanding inked with the Czech government in November 2022. The memorandum also includes provisions for technical expertise and assistance from the EIB, further cementing the collaboration between the Czech Republic and the European Investment Bank in the modernization of the country’s railway network.
