The European Investment Bank will lend Prague the construction of metro D
The EIB is a European Union institution that specializes in providing long-term loans. It makes money available for viable projects and thus to achieve the political goals of the twenty-seven. According to its representatives, it has big plans for the year 2022 in the Czech Republic.
The EIB’s special interest is related to the Czech Presidency of the Council of the EU, which begins in July, as well as to the ongoing war in Ukraine. The financial institution’s priority is to support those Member States that may be adversely affected by the current conflict.
By far the most expensive project that the EIB could finance in the Czech Republic this year is the construction of metro D in Prague. The bank expects to invest around one billion euros, ie approximately 24 billion crowns. “Our financial proposal must be approved by the city management. If that happens, we can sign the contract at the beginning of this year’s third quarter, “reveals Pavlovová.
The mayor of Prague, Zdeněk Hřib (Pirates), also confirmed this to the E15 daily. “At our meeting with Vice President Pavlova last week, we agreed that the construction of Metro D and its financing by the EIB are our common priorities. This week, further working interviews are taking place, which Pavel Vyhnánek is leading the square for finance on behalf of the capital city of Prague. We expect the contract to be concluded by the autumn, “said Hřib.
How Prague will change in the future
“It is also worth noting that we are working on a fully green loan, a project that will support the transformation of Prague into a carbon-neutral city, improve the quality of life and offer a more efficient and cheaper transport alternative to hundreds of thousands of Prague citizens,” adds Pavlovová. The first section of metro D will lead from the total of Pankrác to Nové Dvory and the costs of its construction are to climb to more than 52 billion crowns.
At the same time, the mayor quickly added that Prague could draw EIB funds from the occasional “Ukraine Solidarity Urgent Response”, which will finance, for example, construction or the necessary building materials to support housing, which will greatly help the metropolis in connection with the arrival of large numbers of war refugees. from Ukraine.
In addition to EIB Prague, Charlotte Ruhe, Director of the European Bank for Reconstruction and Development, is currently negotiating the financing of her projects. “I am pleased that the European Investment Bank and many other institutions are turning their attention to Prague at this time,” said the interest of European financial companies in the capital Hřib.
However, according to its boss, the EIB does not forget about other Czech regions either. “At the moment, we are also negotiating with Brno, Ostrava and Pilsen. We want to invest especially in projects that will accelerate the energy transformation of the Czech Republic, “says Pavlovová. On Monday, for example, the bank signed a declaration of cooperation with the Railway Administration.
“The modernization of the railway sector will enable us to achieve our goals of becoming a carbon-neutral continent by 2050. At the same time, it will increase the efficiency, speed, safety and affordability of travel and business, which in turn will support the European Union’s social and economic cohesion and economic activity, ”explains the EIB’s Vice-President.
Also due to the war in Ukraine, the bank intends to finance several defense-related projects in the Czech Republic in the coming months. “These include various cybersecurity systems, surveillance equipment, artificial intelligence research or the renovation of police and military accommodation. However, we cannot invest directly in weapons, “says Pavlovová. The vice-president did not state how much money will be set aside for these plans, but within the entire European Union, the bank can release up to six billion euros, roughly 147 billion crowns, for the security sector.