The European Investment Bank (EIB) is lending CZK 3 billion (approx. EUR 117 million) to the City of Ostrava (Moravia-Silesia) for co-financing priority infrastructure projects with EU grant support in the period of 2007 - 2013.
The EIB funds will help to implement Ostrava’s Capital Investment Programme in the areas of urban renewal and infrastructure, public transport, environmental protection, sewage, education, cultural heritage and community services.
The projects to be financed involve the improvement of a public transport hub in front of the Ostrava-Svinov railway station and revitalisation of the city centre based on an Integrated Urban Development Plan, including the construction of new cycle paths along the Ostravice River, upgrading of the City Zoo, infrastructure investments for the regeneration of the Karolina brownfield area, and the rebuilding of Ostrava Castle. Further projects can be presented by the City for financing at a later stage. The City has indicated that the additional investments will pertain in particular to the municipal sewage system and the City Stadium.
Mrs Marta Gajecka, EIB Vice-President responsible for lending operations in central Europe, including the Czech Republic, commented: “This loan confirms the commitment of the EIB to providing direct loans to municipal and regional authorities in the Czech Republic. EIB funds will help the city of Ostrava, located in a convergence region facing the need of structural changes, to finance projects aimed at strengthening its competitiveness and increasing the quality of life of its 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 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 approx. CZK 23.6 billion with Czech cities (the capital Prague and the cities of Plzeň, Brno, Ústí nad Labem and now Ostrava) and some CZK 11 billion with seven regions.