The European Investment Bank (EIB) is lending CZK 1.2 billion (around EUR 42 million) to the Pardubice Region (Eastern Bohemia) for co-financing projects supported by the EU Structural and Cohesion Funds during the first half of the 2007-2013 Programming Period.
This framework loan will co-finance either Pardubice Region projects supported by EU grants under the Regional Operational Programme North-East and several sectoral operational programmes, or the Region’s own priority investments. It will assist all sectors falling under the Region’s competence such as transport, education, social and health care, culture and tourism. The identification and approval mechanism for individual schemes will take account of the Structural Funds procedures in place. The Region will have the possibility of drawing down the credit in tranches according to its needs over the next three years. Capital repayments will be spread over 18 years, following a grace period of up to 7 years after disbursement.
The current loan represents the continuation of the successful cooperation between the EIB and the Pardubice Region, which was the first Region in the new Member States to receive a loan from the EIB in 2005. This first loan of EUR 30 million has already been fully used and it contributed to the significant upgrading of the Pardubice road network over the past three years. It has proved the Region’s strong capacity to implement and manage a large investment programme.
EIB Vice-President Marta Gajęcka stated: “The EIB fosters regional development in the Czech Republic by providing the individual regions with direct access to long-term EIB funds on favourable terms. The loan signed today constitutes a flexible financing tool that will allow for the early start of Pardubice priority investments further supported by EU Structural Funds. It will accelerate their implementation and contribute to the quicker generation of benefits to local citizens”.
Background:
The EIB, the European Union’s long term financing institution, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Since 1990 the EIB’s lending in the Czech Republic has exceeded some EUR 8 billion.
Since 2005, the Bank has provided loans to seven Czech Regions amounting to approx. CZK 10 billion (EUR 364 million) and to three cities beside the Capital City of Prague totaling almost CZK 4 billion (EUR 146 million).