EIB Lends €200M to Modernise Czech Railways and Strengthen Climate-Resilient Transport Network

The European Investment Bank (EIB) has approved a 5 billion Czech crowns (€200 million) loan to the Czech Republic to support a wide-ranging programme to modernise and upgrade the country's railway infrastructure. The investment will improve regional and national connectivity, strengthen climate resilience, and accelerate the Czech Republic's transition to sustainable, low-carbon transport.

The loan will be channelled through the Czech Ministry of Finance and managed by the State Fund for Transport Infrastructure (SFTI). Funds will be allocated to Správa železnic, the national railway infrastructure manager, which will oversee all renovation, electrification, and modernisation works.

A Major Step in Czech Railway Modernisation

The EIB loan will finance a broad range of projects, including upgrades of regional and TEN-T (Trans-European Transport Network) railway lines, renewal of bridges and drainage systems, and the acquisition of new maintenance vehicles and equipment. These improvements are designed to reduce travel times, enhance safety, and increase the network's efficiency for both passenger and freight transport.

The entire investment programme is expected to be completed by 2030, forming part of a larger strategic framework under which the EIB plans to provide up to CZK 55.3 billion (€2.2 billion) in financing and technical support for Czech rail projects between 2023 and 2027.

"This initiative reinforces the strong cooperation between the EIB and the Czech Republic in delivering sustainable transport investments," said EIB Vice-President Marek Mora. "By investing in safer, greener, and more efficient rail infrastructure, we are helping the country meet its climate goals and improve the travel experience for millions of passengers."

Boosting Safety, Efficiency, and Sustainability

The Czech Republic's railway network is one of the busiest in Central Europe, carrying both domestic and international traffic. However, large sections of the infrastructure require modernisation to meet EU safety and environmental standards. The EIB loan will finance essential improvements such as track renewals, bridge repairs, drainage reinforcement, and electrification of lines, which are crucial for reducing the network's vulnerability to extreme weather events caused by climate change.

Key components of the programme include:

• Renewal of TEN-T corridors that connect Czech cities with neighbouring countries;

• Modernisation of regional lines to improve accessibility and reliability for commuters;

• Upgrades to signalling systems, including the European Train Control System (ETCS) to enhance safety and interoperability;

• Acquisition of maintenance equipment to improve efficiency and ensure long-term sustainability.

These investments will not only strengthen the Czech Republic's transport system but also contribute to the European Union's broader Green Deal objectives by encouraging a shift from road to rail—reducing emissions and congestion.

Complemented by EU Grants and Just Transition Support

A portion of the EIB financing will be complemented by grants from the European Commission's Just Transition Mechanism, designed to help coal-dependent regions shift toward a carbon-neutral economy. So far, nearly CZK 800 million (€30 million) in EU grants has been allocated to projects in Moravia-Silesia, Ústí nad Labem, and Karlovy Vary—regions most affected by the decline of traditional industries.

"The EU's Just Transition Mechanism is supporting people in the Czech coal regions as they move towards a new, carbon-free future," said Emma Toledano Laredo, Director at the European Commission's Directorate-General for Regional and Urban Policy. "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."

Strengthening Freight and Passenger Services

According to Jiří Svoboda, Director General of Správa železnic, the new loan marks a critical step in the long-term modernisation of the Czech rail system. "We are investing in projects that bring tangible improvements—reconstructed lines will increase capacity, meet the growing demand for rail travel, and accommodate freight transport needs," Svoboda said.

He highlighted that electrification and digitalisation remain top priorities. "The ETCS safety system enhances operational safety, while electrification will reduce emissions and increase efficiency. Cooperation with the EIB confirms that Czech railways are moving decisively toward modern, sustainable transport."

The upgraded lines will not only improve service reliability and travel times but also expand access to jobs, education, and essential services—strengthening regional development and social inclusion in line with EU cohesion policies.

EIB's Broader Commitment to Czech Transport

The EIB's involvement in the Czech transport sector extends beyond lending. For nearly two decades, EIB Advisory has provided technical and strategic support to the Ministry of Transport and Správa železnic. Advisory work has guided key national projects such as:

• The development of high-speed rail corridors connecting Prague with neighbouring countries;

• The Prague airport rail link, a major public transit project;

• The national strategy for deploying the European Rail Traffic Management System (ERTMS); and

• The design of transport appraisal tools and public-private partnership (PPP) frameworks for future infrastructure.

These initiatives form part of the EIB's long-term vision to make Czech transport greener, smarter, and more resilient, aligning with the EU's Sustainable and Smart Mobility Strategy.

Advancing Europe's Climate and Cohesion Objectives

With the railway sector playing a central role in Europe's decarbonisation agenda, the EIB's financing is not only an economic investment but also a climate action measure. By supporting the shift to electrified, low-emission transport, the project directly contributes to achieving the EU's 2030 climate targets and the Fit for 55 package.

"This project reflects the EIB's dual mission: to promote sustainable development and to enhance cohesion across the European Union," said Vice-President Mora. "Modernising Czech railways strengthens both national mobility and European integration, connecting regions and creating new opportunities."

A Long-Term Vision for Greener Mobility

As the Czech Republic continues to upgrade its railways, the EIB's €200 million loan represents a major milestone in building a resilient, efficient, and environmentally friendly transport network. The planned modernisation will not only benefit commuters and businesses but also contribute to climate resilience, job creation, and regional competitiveness.

By combining financial investment with expert guidance, the EIB and its partners are helping to shape a future where rail is the backbone of sustainable mobility—linking people, regions, and economies across Europe.