České dráhy Secures €300 Million EIB Loan to Modernize Czech Rail Fleet for Enhanced Safety and Sustainability
(IN BRIEF) The European Investment Bank (EIB) has provided a CZK 7.61 billion (€300 million) loan to České dráhy, the Czech Republic’s national railway operator, to modernize and expand its rail fleet. The funding will enable České dráhy to purchase 180 new passenger coaches and 20 electric locomotives, as well as retrofit 219 existing vehicles with the European Rail Traffic Management System (ERTMS) by the end of 2028. This investment aims to improve travel reliability, reduce journey times, and cut maintenance costs, benefiting regional and cross-border connections in the Czech Republic. EIB Vice-President Kyriacos Kakouris emphasized the importance of this project in supporting sustainable transportation and the EU’s climate goals. České dráhy Board Member Lukáš Svoboda highlighted that the loan will enhance passenger comfort and safety on both domestic and international routes, boosting the railway’s competitive advantage. The initiative also aligns with EU cohesion goals by enhancing connectivity for underserved areas and fostering economic development, with an estimated 160 permanent jobs created.
(PRESS RELEASE) LUXEMBOURG, 30-Oct-2024 — /EuropaWire/ — The European Investment Bank (EIB) has announced a major funding agreement with České dráhy, the national railway operator of the Czech Republic, providing a €300 million (CZK 7.61 billion) loan to support a significant upgrade of the country’s rail infrastructure. This investment will finance the purchase of 180 modern passenger coaches and 20 electric locomotives, alongside retrofitting 219 existing coaches and locomotives with advanced European Rail Traffic Management System (ERTMS) technology. These enhancements are scheduled for completion by the end of 2028, improving regional mobility and cross-border connectivity.
This EIB-backed project aims to enhance the quality, safety, and efficiency of Czech rail services, directly supporting the EU’s sustainability and climate action targets. EIB Vice-President Kyriacos Kakouris highlighted the broader impact, stating, “This financing underlines our dedication to promoting sustainable transport solutions in Europe. Through this modernization of České dráhy’s fleet, we are not only boosting passenger safety and operational reliability but also aligning with critical EU environmental objectives.”
České dráhy’s upgraded rolling stock will be equipped to improve journey times, enhance passenger comfort, and reduce maintenance needs. Furthermore, the ERTMS technology will standardize rail operations across the EU, providing safer and more interoperable services between the Czech Republic and its neighboring countries. Lukáš Svoboda, Member of the Board of Directors and Deputy Director General for Economics and Purchasing at České dráhy, expressed optimism for the upgrades: “With the support of the EIB, we’re investing in high-quality, sustainable travel experiences for our passengers. These modern ComfortJet trainsets will serve key international routes connecting Prague with destinations in Germany, Austria, Slovakia, and Hungary, as well as improving regional transport with the latest in rail safety technology.”
The project will also support job creation, adding around 160 permanent positions for train operators, maintenance crews, and onboard personnel. By focusing on underserved regions, the initiative promotes economic and social cohesion, while contributing to a reduction in carbon emissions and energy consumption.
This EIB funding complements existing grants from the EU’s Connecting Europe Facility (CEF), which seeks to drive job creation and competitiveness across Europe through targeted infrastructure investments, furthering the development of a modern, efficient European rail network.
The European Investment Bank (EIB) is the long-term lending institution of the European Union. It finances sound investments that contribute to EU policy goals and works closely with other EU institutions to advance shared policy priorities, such as equitable growth and a just transition to climate neutrality. In 2023 alone, the EIB Group provided €1.88 billion for Czech projects. We are significantly investing in the rail sector, with close to €1 billion dedicated to rail projects last year. Since its inception, the EIB has provided substantial financing to the Czech Republic, contributing to the development of its infrastructure and economy.
The joint stock company “České dráhy” plays the role of the national carrier in the Czech Republic and on the basis of orders from the state and regions it ensures basic transport services for the state. During recent years it was possible to register a significant rejuvenation of the rolling stock, in both regional and long-distance transport sectors. In its effort of making railway transport more attractive and increasing its competitiveness on the open market the firm has invested dozens of billions of Czech crowns in purchases and modernisation of vehicles.
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First published in this link of EuropaWIRE.
