Czechia to Borrow Record CZK 24 Billion for Railway Modernisation

Published: 11.03.2024 Related countries:  United Kingdom United Kingdom

The Czech Republic has embarked on an unprecedented endeavour by securing a substantial loan from the European Investment Bank.

This loan, totalling 24 billion crowns, has been earmarked for the comprehensive modernisation of the Czech railways, with the ambitious target of achieving these upgrades by 2027. The Ministry of Finance has formalised an agreement with the bank, allocating these funds to a portfolio of forty distinct railway projects.

The significance of this loan extends beyond its sheer size, as it paves the way for the Czech Republic to access additional financial support, including assistance from the European Union. The Railway Administration will oversee the distribution of these funds, channeling them towards various critical aspects of the railway system. These investments will encompass enhancing safety at level crossings, fortifying cybersecurity for the railway company, and facilitating the construction of new stations and railway infrastructure.

This modernisation effort is poised to yield multiple benefits, as it promises to augment the maximum speed and capacity on segments of the Trans-European Transport Network. Consequently, it will bolster transportation connections between different regions within the European Union.

Source: Prague Monitor

Prepared by CzechTrade London team.