EIB Boosts Czech Energy and Rail Infrastructure with €846 Million Investment
The European Investment Bank (EIB) is significantly strengthening Czech infrastructure with a combined investment of €846 million (approximately 21.1 billion Czech korunas) allocated to upgrades in the railway and energy sectors. These investments aim to modernize key transport links and bolster the country’s electricity network, enhancing reliability and supporting the transition to renewable energy sources.
Energy Network Modernization
ČEPS a.s., the Czech transmission system operator, is set to receive a total of €380 million (9.3 billion Czech korunas) to upgrade and expand its high-voltage electricity network. This funding, disbursed in tranches of CZK 6.8 billion (signed in March 2026) and CZK 2.5 billion (signed in October 2025), will focus on refurbishing and extending over 509 kilometers of 400 kilovolt (kV) transmission lines by 2030. EIB financing will cover up to 75% of the project cost.
The modernization is crucial for enhancing the reliability of the Czech electricity system, reducing the risk of outages, and enabling ČEPS to manage changing electricity flows and increasing future demand. The upgrades will as well facilitate the integration of renewable energy sources into the network, requiring more efficient transformers and better coordination of cross-border flows. ČEPS Chairman Martin Durčák emphasized the priority of ensuring a secure electricity supply.
A separate loan of CZK 5 billion (equivalent to €190 million) was also signed with ČEPS to further strengthen the electricity transmission infrastructure. This investment will improve the security of the electricity system and facilitate power exchanges, particularly from Germany to Austria through Poland and the Czech Republic.
Railway Upgrades
In addition to the energy sector investments, the EIB is providing €466 million (11.75 billion Czech korunas) to upgrade key railway lines across the Czech Republic. These improvements will focus on enhancing safety, speed, and sustainability within the country’s rail network, particularly those forming part of the Trans-European Transport Network (TEN-T).
Broader Economic Impact and Municipal Investment
The EIB Group is also supporting Czech economic competitiveness through broader initiatives. A mechanism is in place with UniCredit Bank Czech Republic and Slovakia to mobilize up to €400 million in lending for growth-oriented companies. The European Investment Fund has contributed €172 million through equity commitments and portfolio guarantees.
EIB Vice-President Marek Mora is advocating for increased municipal investment, suggesting that cities and regions can leverage future income streams to secure loans for infrastructure projects, including energy efficiency improvements, transport infrastructure, affordable housing, and digitization of services. Brno serves as an example of successful cooperation, having received a framework loan of three billion crowns for infrastructure development.
Defense Industry Support
The EIB is also increasing its involvement in the European defense industry, with approximately five percent of its spending in 2025 allocated to security and defense. This support is particularly relevant given the growth of the Czech defense industry, which now accounts for nearly three percent of the country’s GDP. The EIB’s investment is helping to destigmatize the sector and encourage private sector financing.