- CZK 700m (EUR 27.4m) loan to co-finance 15 transport, health and social care sub-projects amounting to CZK 1.5bn (EUR 59m)
- EIB lending to complement EU funds
- Third EIB operation granted in the region bringing EIB support to the region to some EUR 116m
The European Investment Bank (EIB) is lending CZK 700m (approx. EUR 27.4m) to the Region of South Moravia to finance upgrades of critical infrastructure in the areas of transport, social care and healthcare. The transport sector investments will be co-financed by EU Structural Funds under the Integrated Regional Operational Programme (IROP) and by the Region’s own budget.
EIB Vice-President Vazil Hudák commented: “Loans to regions are an important part of our product offering, and South Moravia is a valuable partner of the EU bank. With this latest EIB contribution, the Region will be able to build retirement homes and rescue service stations and rehabilitate more roads.”
Governor of the South Moravian Region Bohumil Šimek said: “We have decided to use credit financing to strengthen our investment resources in times of economic growth. The Region is currently repaying its commitments without any problems and last year completed its repayment of the CZB 1.2bn loan accepted in 2005. The new loan will allow us to carry out several investment operations that we could not otherwise undertake due to the continuous increase in the Region’s mandatory expenditures.”
Support to Czech regions and municipalities is a priority of the EU bank as a way to improve citizens´ quality of life and accelerate economic development. Among the EU Member States that joined the EU after 2004, the Czech Republic was the first in which the EIB started to provide direct loans to regions and municipalities already in 2005. To date, the EU bank has signed loan contracts in this regard amounting to approximately EUR 2bn in the Czech Republic.
Approximately 50% of the current loan will support transport projects, e.g. construction of the Cebin bypass in Brno, while around 30% will finance social projects, such as the construction of the Home for Elderly Citizens in Miroslav. The remaining part of the loan will go to the healthcare sector, by co-financing projects such as the health resort with speleotherapy in Ostrov u Macochy.
The South-Moravian Region, located in the south-east of the Czech Republic, covers approximately 9% of the country’s territory. It is home to 1.2 million people and its capital Brno is the country’s second largest city with a population of 377,000.
This operation is a continuation of the fruitful cooperation between the EIB and the South Moravian Region. Previous EIB loans to this region totalling approximately EUR 88.5m are fully disbursed and were allocated to support regional infrastructure/projects, including:
- Construction or upgrading of Mikulovice and Hustopeče–Kurdějov roads and construction of Brno Airport Departures Terminal.
- Culture heritage project: reconstruction of Loew Beerova Villa
- Tourism sector: Thermal Pasohlávky – backbone technical and transport infrastructure