Czech railway safety and capacity strengthened with EIB loan of CZK 13 billion

The European Investment Bank (EIB) has signed a CZK 13 billion (€527 million) loan agreement with the Czech Ministry of Finance to enhance the country's railway infrastructure. This agreement is part of a larger CZK 48.8 billion (€2 billion) EIB operation aimed at expanding the capacity and improving the safety and comfort of Czech railways for both freight and passenger transport. The initiative is set to benefit railway lines across the country, bolstering the trans-European transport network (TEN-T) through three major corridors running through Czechia. The project will be managed by Správa železnic, the national railway infrastructure administrator, under the Czech Ministry of Transport's oversight.

The latest financing round will facilitate the continued deployment of the European Rail Traffic Management System (ERTMS), which significantly reduces human error and accidents, enhances rail capacity, and lowers operating costs. Additionally, modernizing railroad crossings could prevent up to 180 incidents annually, potentially saving 30 to 40 lives each year. The plan includes installing barriers at level crossings and constructing bridges or tunnels for safer crossings by cars, bikes, and pedestrians. These safety improvements align with the EIB's goals of making rail transport a more attractive and sustainable option.

The project also focuses on improving accessibility at railway stations and buildings, particularly for people with reduced mobility and travelers with children. With around 40 sub-projects planned for completion by the end of 2028, the upgrades will primarily target areas under EU cohesion policy, although a quarter of the work will occur in the Prague region. Upon completion, the improved infrastructure is expected to benefit approximately 90 million passengers annually and support the transport of over 8 million tonnes of freight, contributing to regional development and sustainable transport in EU areas with lower economic activity.

EIB Vice-President Kyriacos Kakouris emphasized the dual benefits of the project: enhancing the sustainability of transport options and supporting regional development. Czech Finance Minister Zbyněk Stanjura highlighted the long-standing cooperation with the EIB, which provides advantageous financing for strategic investments. Transport Minister Martin Kupka expressed the government's commitment to modernizing and expanding railway infrastructure, noting that the EIB loan allows for faster and larger-scale progress. The project builds on a 2022 Memorandum of Understanding, where the EIB pledged up to €7 billion in financing and technical assistance to modernize Czechia's railway network, aligning with the country's 2021-2027 transport policy for an energy-efficient, climate-resilient system.