The European Union’s Public Sector Loan Facility (PSLF), part of the Just Transition Mechanism (JTM), supports the modernisation of railway infrastructure in the Ústí nad Labem region in Czechia with a grant of €1.62 million. The PSLF grant complements a European Investment Bank (EIB) loan scheme worth €1.93 billion which covers 36 actions aiming to upgrade railway infrastructure in Czechia. The Ústí nad Labem project, funded under PSLF, covers 3 out of those 36 actions. The project beneficiary is the Czech national railway infrastructure manager Správa železnic, státní organizace.
The project, aims to reconstruct the following three railway infrastructure sections:
- A railway line in Litoměřice, including construction of noise barriers and a fly-over in Libochovany;
- A railway bridge in Ústí nad Labem;
- A railway bridge in Teplice.
The project will help ensure the operability of crucial railway lines for daily commuting in the Ústí nad Labem region. It will enhance the quality and safety of both passenger and freight railway transport while reducing noise pollution caused by railway transport by 4-6 decibels.
As described in the Czech Territorial Just Transition Plan for the Ústí nad Labem region, the project will also contribute to reducing the negative impacts of railway transport on the environment in the municipalities of Litoměřice, Libochovany, Ústí nad Labem and Teplice, and on their inhabitants. By reconstructing specific sections of the railway infrastructure, the project is also expected to enhance the quality of housing and maintain high-capacity railway transport services. Approximately 165,860 residents, along with passengers, will benefit from more efficient and environmentally friendly railway services.
Moreover, the project is expected to boost tourism and travel in urban heritage zones and protected areas such as Teplice, Litoměřice, CHKO České středohoří, and the UNESCO-protected Krušnohoří mining region.
Emma Toledano Laredo, Director at the European Commission, DG REGIO said:
The railway infrastructure in the Ústí nad Labem region has suffered significant wear and tear after decades of transporting heavy coal loads. This project embodies the spirit of the Just Transition Mechanism, as it not only reconstructs these vital transport routes but also improves the quality of life for residents by integrating anti-noise measures. By addressing both environmental and infrastructural challenges, the Public Sector Loan Facility is supporting the ongoing transformation of this important industrial region and its people.
Paloma Aba Garrote, Director of the European Climate and Infrastructure Executive Agency (CINEA) added:
This project is another good example of where support from the Public Sector Loan Facility can make a difference to improve railway infrastructure in Czechia and build a greener and more sustainable future together. The quality of Czech regional rail services will be improved, making rail transport safer, more attractive for travellers, and more sustainable for the environment.
Tomáš Čoček, Deputy DG for Economics, Správa železnic stated:
The JTM programme represents another possible source of funding for the Správa železnic. We are very pleased that we have managed to obtain the first grant that will be allocated for infrastructure constructions in the Ústí nad Labem Region.
About PSLF
The PSLF is the third pillar of the Just Transition Mechanism (JTM) – a key tool of the European Green Deal Investment Plan to make sure that no one and no region is left behind in the transition to a climate-neutral economy.
The PSLF combines loans from the European Investment Bank (up to around €6-8 billion) with grants from the European Commission (up to €1.3 billion). The combined support is designed to mobilise additional investments for public sector entities in the regions most affected by the climate and energy transition as identified in the Territorial Just Transition Plans (the Ústí nad Labem region is one of the three Czech just transition territories, alongside Karlovy Vary and Moravia-Silesia), to meet their development needs in the transition towards a climate-neutral economy. These plans are drawn up by each EU Member State and outline the challenges to be addressed in each just transition region, together with the development needs and targets to be reached by 2030.
The blending of the European Investment Bank loan and the Commission grant will facilitate the financing of projects that do not generate sufficient streams of revenues to cover their investment costs. The PSLF implementation is managed by CINEA.
About DG REGIO
The Directorate-General for Regional and Urban Policy (DG REGIO) is a department of the European Commission responsible for EU policies on regions and cities. It develops and carries out the Commission’s policies on regional and urban policy. It assists the economic and social development of the developed and less developed regions across the European Union.
About CINEA
CINEA is the Executive Agency established by the European Commission to implement parts of EU funding programmes for transport, energy, climate action, environment and maritime fisheries and aquaculture. CINEA aims to support its beneficiaries, establish strong partnerships, deliver high-quality programme and project management, foster effective knowledge sharing and create synergies between programmes – to support a sustainable, connected, and decarbonised Europe.
About the EIB
The EIB, whose shareholders are the 27 Member States of the European Union, is the EU’s long-term financing institution. The EIB provides loans to the public and private sectors to support high-quality investments contributing to the achievement of the EU headline targets. The Ústí nad Labem’s project funded under PSLF is part of a wider loan scheme covering multiple actions for the upgrade of the railway infrastructure in Czechia.