Wedoany.com Report-Oct. 28, The European Investment Bank (EIB) has agreed to provide the Czech Republic with a loan of Kč5 billion ($232 million) to support the modernization of the country’s railway infrastructure. The funds will be distributed by the Czech Ministry of Finance through the State Fund for Transport Infrastructure to the national rail manager, Správa železnic, which will oversee the project’s implementation.

This loan is part of a broader EIB commitment to provide up to Kč55.3 billion ($2.5 billion) in financing and technical support for Czech railway infrastructure between 2023 and 2027. Additional funding will come from the European Commission’s Just Transition Mechanism, which has allocated nearly Kč800 million ($34.8 million) for transport projects in Moravia-Silesia, Ústí nad Labem, and Karlovy Vary.

The upgrades will focus on both regional railway lines and routes forming part of the EU’s Trans-European Transport Network (TEN-T), with work expected to be completed by 2030. The TEN-T network aims to improve connectivity, interoperability, and sustainability across EU member states. Planned improvements include track renewal and repair, acquisition of new maintenance vehicles and equipment, and upgrades to drainage systems and bridges to enhance resilience 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.”

Alongside financing, the EIB continues to provide 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 link to Prague Airport, and strategies for the European Rail Traffic Management System. Advisory support also extends to national transport planning and project evaluation frameworks.

Emma Toledano Laredo, director at the European Commission’s Directorate-General for Regional and Urban Policy, 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 spans 9,463 km, with approximately one-third electrified. Passenger numbers have risen in recent years, excluding the Covid-19 period, due to continuous infrastructure improvements and expanded international connections with Austria and Slovakia.

Through this combined investment and advisory support, the Czech Republic aims to modernize its rail network, enhance passenger and freight capacity, and strengthen the country’s role in regional and European rail connectivity, while contributing to sustainable, low-emission transport solutions.