The Czech Ministry of the Environment has published a list of successful applicants for investment support aimed at procuring new EMUs and hybrid trains to enhance rail services across eight regions and the capital city of Prague.
A total of 17 project proposals were submitted from 13 regions and Prague, seeking a combined investment of CZK 26.5 billion (EUR 1 billion). Of these, 11 projects – representing eight regions and Prague – have received approval from the State Environmental Fund of the Czech Republic (SFŽP). The total funding amounts to CZK 15 billion (EUR 616.5 million), provided through the Modernisation Fund, which is financed via the EU Emissions Trading System (ETS).
The investment aims to replace outdated, polluting trainsets with modern, energy-efficient rolling stock. “This support will benefit railway lines currently undergoing electrification. Rail transport has enormous potential to become the backbone of sustainable mobility in the Czech Republic – and thanks to ETS revenues channelled through the Modernisation Fund, we can give it the boost it needs,” said Environment Minister Petr Hladík.
Under the first call of the TRANSGov 1/2024 programme, regional authorities and the capital city of Prague – as contracting entities for regional rail services – were invited to submit project proposals. Funding is intended for the replacement of diesel or obsolete electric passenger trains with new EMUs and hybrid trains, including battery-electric and hydrogen-powered units.
“All applications successfully passed evaluation, meaning they met the programme’s criteria and were eligible for Modernisation Fund support. The final ranking was determined based on the so-called ‘specific subsidy intensity’ – the ratio between expected energy savings and the requested funding amount,” explained Petr Valdman, Director of the State Environmental Fund.
The new EMUs and hybrid trains will operate in the regions of Plzeň, Moravian-Silesian, Zlín, Ústí nad Labem, South Bohemian, Vysočina, Hradec Králové and Pardubice, as well as in Prague. “The remaining projects have been placed on a reserve list and may still receive support if funds become available, for example through tender results or project withdrawals,” added Minister Hladík.
Regions that succeeded in this round must sign public service contracts with rail operators by the end of 2026, obliging them to procure and operate the new subsidised vehicles. If regions decide not to use external operators, they may acquire the trains directly. In the second round, eligible applicants will include contracted operators or, alternatively, the regions themselves.
Applicants may receive up to 70% funding for the replacement of diesel trains and up to 40% for the replacement of older electric vehicles. The second call for applications is expected to open in December 2025, with submissions accepted until March 2027.
Prague node to be developed
This year, the Czech Ministry of Transport has selected the preferred option to develop the rail system in Prague. The entire project has a value of EUR 7.3 billion and covers the construction of two separate underground lines with four underground stops and a two-storey central station beneath the main railway station. Thus, five new stations will be built and 10.6 km of tunnels will be constructed, designed to intersect at two levels within the central station.
The aim is to support up to 16 trains per hour in each direction in each tunnel.
The development of the Prague rail node is a crucial investment in the future of the capital’s mobility and in the wider Czech transport network. Prague is the country’s busiest railway hub, handling a growing mix of regional, national, and international services that converge in the metropolitan area. Current infrastructure is nearing capacity, creating operational bottlenecks that limit both punctuality and the ability to expand services. By moving part of the traffic underground and creating dedicated routes for regional trains, the new system will significantly increase overall capacity and efficiency, paving the way for more frequent and reliable services.
Beyond the city itself, the project will play a key role in reshaping passenger flows across the country and supporting economic development. Improved rail connectivity will shorten travel times between Prague and major cities such as Brno, Plzeň, and Ústí nad Labem, while also facilitating cross-border links with neighbouring countries. By attracting more commuters and long-distance passengers to rail, the investment will help reduce road congestion and emissions in the Prague metropolitan area, reinforcing the city’s commitment to sustainable urban transport and strengthening its position as a central hub within the European rail network.
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