Czech Republic Strengthens Railway Network with EIB Loan

The Czech Republic has secured a €200 million ($215 million) loan from the European Investment Bank to modernize and renew its railway network. The investment will improve safety, sustainability, and competitiveness while supporting both passenger and freight transport.

This is reported by the railway transport news portal Railway Supply.

Czech Republic Modernizes National Railway System

The Ministry of Finance will distribute the funds through the State Fund for Transport Infrastructure to Správa železnic, the national railway infrastructure manager. Projects will focus on regional and Trans-European Transport Network (TEN-T) lines, as well as new maintenance vehicles and equipment. The work should be completed by 2030.

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EIB Vice-President Marek Mora said the initiative reinforces strong cooperation between the EIB and the Czech Republic. He noted that investing in safer, greener, and more efficient rail infrastructure helps the country meet climate goals and improve travel for millions of passengers.

Czech Republic Expands EU-Backed Railway Investment

The new loan forms part of a broader cooperation framework under which the EIB expects to provide up to CZK 55.3 billion (€2.2 billion / $2.37 billion) for Czech railway infrastructure between 2023 and 2027. Part of the financing will be supported by the European Commission’s Just Transition Mechanism to help regions most affected by the shift to a low-carbon economy.

Správa železnic Director General Jiří Svoboda said the EIB loan allows continued modernization of the Czech railway network. He explained that reconstruction increases line capacity to meet growing demand from both passengers and freight operators. The ETCS system enhances safety, and future electrification remains a key challenge.

Nearly CZK 800 million (€30 million / $32 million) in EU grants under the Just Transition Mechanism will finance sustainable transport projects in Moravia-Silesia, Ústí nad Labem, and Karlovy Vary — the regions most affected by the energy transition.

Emma Toledano Laredo from the European Commission said the EU mechanism supports Czech coal regions in building a carbon-free future. She emphasized that investing in a modern railway network reduces emissions, cuts travel times, and makes rail a more attractive option.

For nearly two decades, EIB Advisory has supported the Ministry of Transport and Správa železnic in strategic rail planning, including high-speed corridors, the Prague airport link, and the national rollout of ERTMS. The Czech Republic’s 9,463-kilometer network, one-third already electrified, continues to see steady growth in passenger volumes thanks to modernization and international links with Austria and Slovakia.

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