Czech Republic to upgrade railways with €200 million EIB loan, bolstering transport safety and sustainability

• EIB lends Czech Republic €200 million for improvements to regional and priority EU railway lines.
• Czech rail infrastructure manager Správa železnic to enact project, which is due for completion by 2030.
• Plan includes purchase of new maintenance vehicles

The European Investment Bank (EIB) is lending the Czech Republic 5 billion Czech crowns (around €200 million) to upgrade the country's railways. The Czech Ministry of Finance will pass the EIB funding via the State Fund for Transport Infrastructure to national railway infrastructure manager Správa železnic, which will carry out the works.

Správa železnic will repair and renew regional lines as well ones that are part of the European Union's priority Trans-European Transport Network (TEN-T). The company will also purchase new maintenance vehicles and equipment, The whole project is due to be completed by 2030.

"This initiative reinforces the strong cooperation between the EIB and the Czech Republic in delivering sustainable transport investments," said EIB Vice-PresidentMarek Mora. "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."

The new loan is part of a cooperation framework under which the EIB foresees up to CZK 55.3 billion (€2.2 billion) in financing and technical assistance for Czech railway infrastructure between 2023 and 2027. A part of the loan will be complemented by grants from the European Commission under the Just Transition Mechanism.

The goal is to reduce travel times, improve passenger access to stations and enhance the competitiveness of rail freight. The planned infrastructure improvements will extend to drainage systems and bridges, bolstering the rail network's resilience to climate change.

These investments reinforce rail's role as a competitive, low-emission transport mode and support regional development and social inclusion, particularly in cohesion regions.

The new EIB loan has enabled several grants from the EU's Just Transition Mechanism totalling nearly CZK 800 million (approximately €30 million[VM1] ). The grant supports schemes in the regions of Moravia-Silesia, Ústí nad Labem and Karlovy Vary, helping areas most affected by the transition to a climate-neutral economy invest in sustainable transport.

"The loan from the European Investment Bank will enable us to continue the systematic modernization of the Czech railway network," said Jiří Svoboda, Director General of Správa železnic. "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. The ETCS system ensures greater safety. A key challenge for the coming years will also be the electrification of additional lines. Our cooperation with the EIB confirms that the Czech railway is moving in the right direction."

"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," said Emma Toledano Laredo, Director at the European Commission's Directorate-General for Regional and Urban Policy.

Beyond financing: EIB Advisory's long-standing role

The EIB's support for Czech rail infrastructure extends beyond lending to include advisory services. For nearly two decades, EIB Advisory has worked closely with the Ministry of Transport and Správa železnic, helping shape strategic investments including high-speed rail corridors, a Prague airport rail link and a national strategy for deploying the European Rail Traffic Management System (ERTMS). Advisory input has also supported broader Czech transport planning, including the development of a national transport strategy, project appraisal tools and a rail public-private partnership (PPP) projects.

Background information

The project focuses on upgrading lines that are part of the Trans-European Transport Network (TEN-T), a European Union initiative aimed at improving connectivity, interoperability and sustainability across member states. TEN-T corridors are essential for cross-border mobility and economic cohesion in the EU, linking major cities, ports and industrial hubs. More information about TEN-T can be found here.

The Czech rail network spans 9,463 route kilometres in total, including national and regional lines. A portion of this constitute the mainline network, and around one-third of the total network is electrified. Excluding the COVID-affected period, the volume of train passengers has steadily increased. This can be explained by enhancements in rail infrastructure and rolling stock, resulting in reduced travel times across many routes. New international connections to Austria and Slovakia, as well as improved competition for rail services, have also contributed to the growing popularity of rail travel in the country.

About the EIB and the Czech Republic

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its 27 Member States. It provides finance and expertise for sound and sustainable investment projects that contribute to EU policy goals. These include climate action, innovation, cohesion, energy security, and technological leadership. In 2024, the EIB Group signed €88.8 billion in new financing, supporting projects that promote prosperity, sustainability, and strategic autonomy across Europe and beyond. In 2025, the EIB Group's financing ceiling was increased to €100 billion to accelerate investments in defence, energy grids, and Europe's tech leadership. The EIB Group invested €2.47 billion (or CZK 63 billion) in the Czech Republic in 2024, supporting regional development and boosting economic resilience while also enhancing environmental sustainability and improving quality of life.

About PSLF and Just Transition Mechanism (JTM)

The Public Sector Loan Facility aims at alleviating the social and economic effects of the transition towards climate neutrality in the EU regions. It is a blending facility that combines loans from the EIB with grants from the European Commission to help mainly public sector entities in the most affected EU regions identified in the territorial just transition plans, to mobilise additional public investments and meet their development needs in the transition towards climate neutrality. The first PSLF call for proposals was launched on 19 July 2022 with 10 intermediate cut-offs until the end of 2025.. The next call for proposals, covering the 2026-2027 period, will be launched on 23 October 2025.

The grant component under PSLF is implemented jointly by European Commission's Directorate-General for Regional and Urban Policy (DG REGIO) and the European Climate, Infrastructure and Environment Executive Agency (CINEA). To find out more about PSLF and PSLF-funded projects, visit CINEA website.

About Sprava zeleznic

Správa železnic is the owner and provider of national and regional railway infrastructure owned by the state. Pursuant to Act on Rail Systems, Správa železnic provides operation of the nation-wide and regional railways owned by the state, their operability, modernization and development to the extent necessary to ensure the transport needs of the state and transport services. Správa železnic is the manager of assets comprising the railway infrastructure. Správa železnic is a member of UIC (International Union of Railways), CER (Community of European Railway and Infrastructure Companies) and other significant railway associations. To find out more visit the website.

[VM1] Dotace z JTM jsou schválené: 30 133 174 EUR