The European Investment Bank (EIB) is lending CZK 500 million (approx. EUR 20 million) to the Zlín Region (Central Moravia) for co-financing the Region’s priority projects within the framework of the EU programming period 2007-2013.
The EIB loan will be used mainly for co-financing the Region’s projects supported by EU Structural and Cohesion Funds under the Regional Operational Programme for Central Moravia as well as under the OP Environment and OP Cross-border Co-operation with Slovakia, and possibly others. The project may also include the Region’s own investments, undertaken without EU grant assistance.
The sub-projects to be financed will mainly be small and medium-sized investments. The majority of the funds are expected to be devoted to the regional road network, although a large portion will also support sub-projects aimed at improving energy efficiency in the Region’s public facilities, such as schools, hospitals and social care facilities. The Bank took a decision to extend this credit on the basis of a robust investment plan and pipeline of schemes presented by the Region.
It is estimated that – within the framework of the project to be co-financed by the Bank – the Zlin Region will undertake investments amounting to as much as CZK 7 billion.
The current loan represents a continuation of the successful cooperation between the EIB and the Zlín Region, to which the Bank granted a loan of CZK 1.5 billion in 2005 for upgrading the regional road network and other infrastructure under the Region’s management.
Mrs Marta Gajecka, EIB Vice-President responsible for lending operations in the Czech Republic, stated: “The EIB supports the development of the Czech regions and municipalities by improving their access to long-term finance provided on favourable terms. The loan to the Zlín Region, which will be combined with EU grants, will help to implement important investment projects that have the potential to strengthen regional competitiveness and increase people’s quality of life in Central Moravia.
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 EUR 9.5 billion. The Czech Republic is the second largest EIB borrower by volume among the EU Member States that joined the Union after 2004.
The Bank has already signed loan contracts worth some CZK 11 billion with seven Czech Regions (Zlínský, Pardubický, Vysočina, Jihomoravský, Jihočeský, Moravskoslezský and Olomoucký) and contracts worth around CZK 20.6 billion with the Czech capital Prague and the cities of Plzeň, Brno and Ústí nad Labem.