The European Investment Bank , a financial institution under the European Union, recently announced a loan of 5 billion kronor to the Czech Republic for the implementation of a major railway upgrade plan. The project will focus on the renovation of regional routes and key sections of the cross European transportation network, and is expected to be fully completed by 2030.

This funding will be allocated to the national railway infrastructure management company Spr á va ž eleznic through the National Transport Infrastructure Fund under the Czech Ministry of Finance. Part of the funds will be used to purchase new track maintenance vehicles and equipment to improve maintenance efficiency.

According to the plan, this upgrade will significantly shorten transportation time and enhance the market competitiveness of railway freight transportation. The specific project includes:

Comprehensively upgrade the drainage system and bridge structure

Strengthening the Climate Change Adaptation Capacity of Railway Networks

Promote the electrification transformation of power lines

Expand the transportation capacity of the route

This financing is part of the 2023-2027 cooperation framework signed between EIB and the Czech Republic. The framework promises to provide comprehensive support of up to 55.3 billion kronor, covering two major areas: funding and technical assistance.

It is worth noting that this loan also activates the 800 million kronor grant provided by the EU's just transition mechanism. These funds will specifically support sustainable transportation construction in the three traditional coal mining areas of Moravia Silesia, Ust on the banks of the River Labe, and Karlovy Vary, helping these regions cope with the socio-economic impacts of energy transition.

Emma Toledano Laredo, Director General for Regional and Urban Policy of the European Commission, emphasized that "a just transition mechanism is helping Czech coal regions move towards a carbon free future. The construction of a modern railway network will be a key driving force for transformation, reducing emissions and enhancing the attractiveness of electric vehicle travel

Jif í Svoboda, General Manager of Spr á va ž eleznic Company, said, "By systematically improving transportation capacity, we can meet the growing demand for passenger transport while also taking into account the needs of freight development. Electrification construction will become the core challenge in the future." Keywords: international news, transportation news

The EIB consulting department is currently working closely with the Czech Ministry of Transport and railway companies to jointly promote multiple strategic projects

New high-speed railway lines

Prague Airport Railway Connection Line

National ERTMS Signal System Deployment Strategy

Exploration of Public Private Partnership (PPP) Model in Railway Field

This investment marks a new stage of comprehensive upgrading of Czech railway infrastructure, which will provide key support for the country's transition to a climate neutral economy by improving transportation efficiency, enhancing climate resilience, and promoting regional equitable development.Editor/Cheng Liting