Two Czech projects secure EU funding under PSLF

The European Commission has selected for funding two projects in Czechia, for a total requested grant amount of €7.95 million under the Public Sector Loan Facility (PSLF) of the Just Transition Mechanism (JTM). These projects proposals were submitted under the ninth cut-off date of the PSLF call.

Both projects are located in Moravia-Silesia, a region that is classified as less developed and falls within the Czech Territorial Just Transition Plan (TJTP).

One project, implemented by the City of Kravaře, aims to replace an existing substandard school gym with a new, modern and multifunctional sports hall (PSLF grant requested: €0.75 million).

The second project, managed by the Czech national railway administration (Správa železnic), focuses on improving traffic safety and efficiency near the Studénka railway station. The project involves upgrading two railway-road crossings and surrounding infrastructure, including a railway bridge, signalling, road adjustments, and the reconstruction of 1 907 metres of road and 1 118 metres of pavements and cycle paths (PSLF grant requested: €7.18 million).

Background

The Public Sector Loan Facility (PSLF) is an instrument under the Just Transition Mechanism (JTM) that aims at alleviating the social and economic effects of the transition of the EU regions towards climate neutrality. It is a blending facility that combines loans from the European Investment Bank (up to around €6-8 billion) with grants from the European Commission (up to €1.3 billion) 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 to a climate-neutral economy. These plans are drawn up by each EU Member State and outline the challenges to be addressed in each just transition region, together with the development needs and targets to be reached by 2030.

The European Climate, Infrastructure and Environment Executive Agency (CINEA) is responsible for the implementation of the Public Sector Loan Facility under the Just Transition Mechanism.

The first PSLF call for proposals was launched on 19 July 2022 with 10 intermediate cut-offs until the end of 2025. The last cut-off date deadline for proposal submission under the first call is 11 September 2025. A second call for proposals with several cut-off dates in 2026-2027 will be published in the second half of 2025.

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