The European Investment Bank (EIB) has approved a EUR 200 million loan to support the modernisation and renewal of the Czech Republic’s railway network. The investment will strengthen the safety, sustainability and competitiveness of rail transport while improving passenger and freight connections across the country.
The Czech Ministry of Finance will channel the funds through the State Fund for Transport Infrastructure to the national railway infrastructure manager Správa železnic, which will implement the projects. Works will focus on the repair and modernisation of regional and Trans-European Transport Network (TEN-T) lines, alongside the purchase of new maintenance vehicles and equipment. The upgrades are scheduled for completion by 2030.
“This initiative reinforces the strong cooperation between the EIB and the Czech Republic in delivering sustainable transport investments,” said EIB Vice-President Marek 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.”
Major step in EU-backed railway investment
The new loan forms part of a broader cooperation framework under which the EIB expects to provide up to CZK 55.3 billion (EUR 2.2 billion) in financing and technical assistance for Czech railway infrastructure between 2023 and 2027. Part of the funding will be complemented by grants from the European Commission’s Just Transition Mechanism, which supports regions most affected by the shift to a low-carbon economy.
These investments aim to reduce travel times, enhance passenger access to stations, and boost the competitiveness of freight transport. The programme also includes upgrades to bridges, drainage systems, and other climate-resilient infrastructure, ensuring the network can better withstand extreme weather events linked to climate change.
“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.”
Support for coal region transformation
Nearly CZK 800 million (EUR 30 million) in EU grants under the Just Transition Mechanism will complement the loan, financing sustainable transport projects in Moravia-Silesia, Ústí nad Labem, and Karlovy Vary—regions most affected by the energy transition.
“The EU’s Just Transition Mechanism is supporting people in the Czech coal regions as they move forward towards a new, carbon-free future,” said Emma Toledano Laredo, Director at the European Commission’s Directorate-General for Regional and Urban Policy. “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.”
Strengthening EIB’s long-term partnership with Czech transport
The EIB’s contribution to Czech rail development goes beyond lending. For nearly two decades, EIB Advisory has collaborated with the Ministry of Transport and Správa železnic on shaping strategic investments, including high-speed rail corridors, the Prague airport rail link, and a national rollout plan for the European Rail Traffic Management System (ERTMS). Advisory input has also supported broader transport planning, such as national strategies and public–private partnership models.
Investing in a growing network
The Czech Republic operates a rail network of 9,463 kilometres, including national and regional lines. Around one-third of this network is electrified. Excluding the pandemic years, passenger numbers have steadily risen, driven by improved infrastructure, faster connections, and new international links with Austria and Slovakia.
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