EIB Grants €300M to Czech Rail Operator for Green Rail Upgrades and New Rolling Stock

The combined investment underlines the EU’s commitment to enhancing the sustainability of its transport sector while supporting regional development and connectivity.

The European Investment Bank (EIB) has approved a substantial loan of CZK 7.61 billion (equivalent to €300 million) to bolster the Czech Republic’s rail transport system by financing upgrades and expansions for its national operator, České dráhy. This financing will fund the purchase of 180 modern passenger carriages, 20 electric locomotives, and retrofitting of 219 existing units with the cutting-edge European Rail Traffic Management System (ERTMS). The initiative aims to improve service quality and safety across Czech cohesion regions and cross-border routes, with project completion slated for 2028.

EIB Vice-President Kyriacos Kakouris emphasized the bank’s dedication to sustainable transport, stating, “By modernising České dráhy’s fleet, we not only enhance the safety and efficiency of rail services but also advance the EU’s climate-action goals.” This new investment extends the EIB’s longstanding partnership with České dráhy, contributing to the €880 million the EIB allocated to Czech rail projects in 2023 alone.

The improvements will significantly reduce emissions, lower maintenance costs, and promote the EU’s climate goals. České dráhy plans to utilize the loan primarily for the ComfortJet trainsets, which will improve long-distance routes connecting Prague with Germany, Austria, Slovakia, and Hungary. Additionally, retrofitted trains with the European Train Control System (ETCS) will ensure enhanced interoperability across European rail networks.

“The funds enable us to modernize long-distance trains, making journeys more convenient and safer for passengers,” said Lukáš Svoboda, Board Member and Deputy Director General of České dráhy for Economics and Purchasing. He added that the upgrades will allow České dráhy to continue prioritizing eco-friendly rail transport.

The Czech cohesion regions, which have historically faced infrastructure limitations, stand to gain the most from these upgrades, expected to drive regional economic and social cohesion by creating 160 new permanent jobs, primarily for train drivers, on-board staff, and maintenance workers. Enhanced cross-border rail connections will also strengthen mobility within the EU, particularly for commuters and regional travellers.

This EIB loan complements other EU infrastructure grants under the Connecting Europe Facility (CEF), which plays a vital role in promoting sustainable growth, employment, and competitiveness across Europe. The combined investment underlines the EU’s commitment to enhancing the sustainability of its transport sector while supporting regional development and connectivity.