The European Investment Bank (EIB) is lending EUR 30 million for the rehabilitation of the local road network to the Pardubice Region. This is the first direct EIB loan provided to a regional administration in the new Member States.
The project addresses the growing problems of road deterioration due to the backlog of road rehabilitation accumulated as a consequence of past budgetary restrictions, as well as rapidly increasing traffic.
The rehabilitation schemes to be included in the project will improve road sections needing urgent rehabilitation due to their poor or critical condition. The schemes will be selected on the basis of economic criteria such as their contribution to mobility in the local economy, importance as bus routes, access to business or tourist areas, etc. By modernising the network and improving its safety, the project will allow the Region to cope with the challenge of the increased traffic recorded within recent years, thus enhancing its growth prospects. Amongst the other schemes financed, the project includes the reconstruction of the bridge of Pavel Wonka located in the centre of the City of Pardubice, which represents a major investment for the local economy.
Mr. Ivan Pilip, the EIB Vice-President responsible for the Bank's operations in the Czech Republic, who signed the loan contract stated: With the loan provided to the Pardubice Region the EIB has confirmed the priority it gives to direct lending to local authorities in the new Member States. By providing financial resources for regional development directly to the local authorities concerned, particularly for the upgrade of regional transport infrastructure, the Bank will help to cover local investment needs and strengthen regional competitiveness .
The EIB, as the European Union's long-term financing institution, has provided approximately EUR 5.5 billion for projects furthering European integration in the Czech Republic since 1990. About 50% of this amount has represented investments in transport and communication infrastructure. Modernisation of trans-European railways corridors and the upgrade and extension of the Czech motorway network (e.g. D8 motorway, Prague Ring, etc.), as well as the extension of the Prague metro and investments leading to environmental improvements represent the major projects undertaken by the Bank.
Since the start of its operations in the new Member States and Acceding Countries - Bulgaria and Romania - in 1990, the EIB has provided more than EUR 28 billion for projects fostering European integration in these countries. As such, the EIB is the most significant external source of financing in this region.