Representatives of the European Investment Bank and the City of Prague signed today a EUR 75 million loan for construction of the extension of Prague's metro line C.
Prague is investing massively in its public transport systems with the goal to reduce congestion and pollution, and to modernise its system to reach European standards. The project will extend Prague's metro line C from Ladvi to Letnany, in the northeast of the City, adding 4.6 km track and 3 stations. This area of Prague is subject of significant demographic and economic development but it is insufficiently served by public transport, with heavy reliance on buses using congested and polluted roads. The first section of the extension of line C to Ladvi was already financed by the EIB and will be completed shortly.
The extended metro line is expected to have a catalytic effect on the economy of the developing areas in the north-east part of Prague, and make the residential quarters in the served areas more attractive. The project will help the Czech Republic to implement EU environmental standards through a significant reduction of pollution due to usage of environmentally friendly transport.
Since 1990, the EIB has lent in total more than EUR 21 billion in Central and Eastern Europe to finance projects fostering the European integration. Loans provided to the Czech Republic since 1993 exceed EUR 4 billion. For example, after the devastating August 2002 floods, the EIB lent EUR 480 m for rebuilding the damaged infrastructure. This year, the Bank provided a CZK 9 billion loan (approx. EUR 292 million) for a new passenger terminal at Prague Ruzyne International Airport that will help to meet criteria requested for implementation of the Schengen border regime.
The Bank has a strong operational relationship with the City of Prague. The EIB has provided a framework loan for Prague's municipal infrastructure, a loan for an extension of the metro network, and a loan for the flood damaged metro.