Approved! On the modernization of railway sections will go up to 11.5 billion loan from EIB.(Czech Transport Ministry)

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The government approved the proposal of the Ministry of Transport on loan from the European Investment Bank for the construction and modernization of railways between the years 2019 – 2025. The draw will be up to 11.5 billion crowns. Specifically, the money can go, for example, two sections of track readiest Velim – Poříčany and Dětmarovice – Petrovice u Karviné – Polish border.

Transport Minister Dan Tok says:

“A loan from the European Investment Bank are preparing for the future funding of transport infrastructure. The amount of funds from the European Fund, from which it is paid, most important transport construction will decline in the future. Receipt of the loan will bring the experience of another possible way of financing. These experiences, we will come in handy in the future. “

The purpose of approved material was obtaining government approval to receive a loan from the European Investment Bank (EIB) to a maximum of 11.5 bln. CZK treatment of selected sections of railway corridors, which were part of the project “Removing bottlenecks selected at predetermined sections of the core network corridors Czech Republic “submitted to the so-called blending “challenges of the Connecting Europe Facility (CEF).

Blending involves project funding through a combination of grants and EIB loan resources of the state budget. It is the result of efforts by the European Commission to find new and innovative models of financing transport infrastructure. Basically, the European Commission through a grant motivates us to credit financing of transport infrastructure which will enable the rapid construction.

The European Investment Bank is an international financial institution whose primary objective is to support the implementation of development programs of the Member States of the European Union. Therefore, a more favorable interest rate compared to other alternatives in the market. Concluding individual loan agreements and decisions of the advantages of each tranche will be provided by the Ministry of Finance, which also guarantees at the national level the ability to repay the loan.

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