The European Investment Bank (EIB) lends EUR 30 million for the upgrading of roads in the Olomouc Region, Central Moravia.
The project will improve access communications to the trans-European network roads that are important for the international transport. This will help the Olomouc Region to profit better from its location as a transit area to Poland and Slovakia.
The EIB investment will finance regional road rehabilitations included in the Investment Programme of the Region for 2005 - 2008. It will help to cope with the continuing trend of the substantial increase in road traffic flows since the Czech Republic joined the European Union in 2004 as well as shorten the travel times, increase the safety of regional road transport as well as reduce the vehicle operation costs due to the improved road surfaces.
Examples of the major road sections upgraded by the loan include the section: Uničov-Litovel, Bedihošť – Kojetín, Slavětín – Konice as well as the crossing in Tovačov and a number of bridges, all important for the local transport. Parts of the project will be co-financed by the EU Structural Funds.
Mr. Ivan Pilip, EIB Vice-President responsible for the Czech Republic, commented upon signature of the contract: The loan signed today is the fifth EIB loan granted to a Czech Region this year and confirms the priority given by the Bank to lending to the local authorities of the new Member States. It will support important regional investments and, together with loans from the commercial banking sector, will also help covering the co-financing needs for priority projects supported by the EU Funds.
The EIB, the European Union's long term financing institution, funds projects that contribute towards the balanced development and economic and social cohesion of the EU Member States. Since 1990, the EIB has lent a total of some EUR 32 billion in Central and Eastern Europe, out of which some EUR 6 billion financed projects in the Czech Republic.