Czech trains to be upgraded with €300 Million EIB loan to national railway operator

The European Investment Bank (EIB) is lending CZK 7.61 billion Czech korunas (€300 million) to the Czech Republic’s national railway operator, České dráhy, to buy new train carriages and locomotives as well as upgrade existing ones. České dráhy will use the loan to purchase 180 passenger coaches and 20 electric locomotives. The company will also retrofit 219 existing coaches and locomotives with modern technology known as the European Rail Traffic Management System (ERTMS). The improvements, due to be completed by the end of 2028, will benefit Czech cohesion regions and cross-border connections.

“This financing exemplifies our unwavering commitment to sustainable transport,” said EIB Vice-President Kyriacos Kakouris. “By modernising the rolling stock of České dráhy, we are not only enhancing the safety and efficiency of rail services but also advancing the EU’s climate-action goals.”

The loan builds on years of EIB- České dráhy cooperation to upgrade infrastructure and rolling stock. Last year alone, the EIB committed €880 million to Czech rail projects.

“The funds from the European Investment Bank help us to invest into the modernisation of our rolling stock. We are using the funds obtained in this way primarily for improvement of the quality of long-distance trains, including the acquisition of the most modern ComfortJet trainsets, which will run on the lines interconnecting Prague with Germany, Austria, Slovakia or Hungary, as well as for equipment of other vehicles with the on-board part of the European Train Control System (ETCS). Thanks to these investments, we will offer our passengers more comfortable, more convenient and safer trains and we will further strengthen the competitive edge of the modern and environment-friendly railway transport,” says Lukáš Svoboda, Member of the Board of Directors and Deputy Director General of ČD for Economics and Purchasing.

The new and retrofitted rolling stock will improve service reliability, shorten journey times and lower maintenance costs.
The use of ERTMS will enhance safety and interoperability across the European rail network. The fleet to be retrofitted with ERTMS is expected to be operated for regional and long-distance connections under public-service contracts mainly in the Czech Republic and to a limited extent in neighboring countries.

The environmental benefits include reductions in emissions and energy consumption, contributing to the EU’s climate action goals. The project will also support economic and social cohesion by improving mobility for people primarily in the country's less-developed regions and by strengthening connections to other EU countries.

Furthermore, the initiative is projected to create around 160 permanent jobs, primarily for train drivers, accompanying staff and maintenance personnel.

The EIB loan complements grants under the Connecting Europe Facility (CEF). The CEF is a key EU funding instrument designed to promote growth, jobs and competitiveness through targeted infrastructure investments.