CZK 8 billion (around €300 million) loan to finance flood prevention, storm water retention, water supply and sanitation measures across the country.
Around 110 000 people to benefit from better water services.
Sixth EIB operation bringing EIB lending to the Czech Ministry of Agriculture to €1.3 billion, with a strong climate action focus.
The European Investment Bank (EIB) is lending CZK 8 billion (around €300 million) to finance a vast set of measures put in place by the Czech Ministry of Agriculture to strengthen the country’s water management services, including flood protection and storm management.
The implementation of the project will result in significant benefits for the people of the Czech Republic. It will provide protection against floods to an additional 47 000 people and improve the water supply of a total population of 24 000. Furthermore, it will increase wastewater collection and treatment for a total of 39 000 people and create an additional 2 million m3 of storm water storage capacity.
EIB Vice-President Lilyana Pavlova commented: “The EU climate bank is taking action to preserve natural resources and protect the environment for future generations. Thanks to these measures,the EU bank will help to improve living conditions for some 110 000 people in the Czech Republic, where approximately 25% of the population live in flood-prone zones facing disastrous floods on average every 10-15 years. This is a programme with a strong climate action focus, which will allow for the provision of better water services and help the country to meet its commitments stemming from national and EU environmental legislation.”
Czech Minister of Agriculture Miroslav Toman stated: “The Ministry of Agriculture greatly appreciates thelong-term cooperation with the EIB and we are very pleased to continue with it. We are facing a turbulent period of climate change, which we perceive – from the point of view of the Czech Republic – above all as a considerable decrease in water resources. As part of the measures under construction, our priority is to ensure a stable supply of drinking water for the citizens of the Czech Republic and to build new and repair existing ponds in municipalities. However, we must not forget the opposite extreme and protect the population from floods. EIB funding will help us implement many important measures to combat climate change in the coming years.”
The current operation is a continuation of very fruitful cooperation between the EIB and the Czech Ministry of Agriculture. It is the sixth loan provided by the EU bank to this ministry since 1999, for a total amount of €1.3 billion.
Examples of concrete projects supported by the loan:
Water supply and sewerage
Project: Jelence Waterworks
The investment involves the construction of a 1.6 km-long water line, one well drill and a reservoir of 40 m3 with water treatment technology. Upon completion, a high quality drinking water supply will be provided to local residents.
Project: Třebovice, Třebovka - Česká Třebová, flow modification - construction part
The aim of the investment is to provide flood protection along the section of the Třebovka watercourse over 12 km for the municipalities of Třebovice and Rybník and the city of Česká Třebová. This operation will increase the level of flood protection from the current two-year floods to 100-year floods.
Project: Construction of a municipal pond in Chotěšice (Central Bohemia)
Construction of a 4.7 ha water reservoir with a total volume of 66 000 m3. The project will improve the local water regime, stabilise the level of local groundwater and strengthen local eco-stabilisation functions. The water reservoir will also have flood protection impacts with a retention volume of 24 000 m3.
Climate financing by seven of the world’s largest multilateral development banks (MDBs) accounted for $61.6 billion in 2019, of which $41.5 billion (67%) was in low- and middle-income economies, according to the 2019 Joint Report on Multilateral Development Banks’ Climate Finance. The study expands the scope of reportingfor the first timeto all countries of operation. It now provides data on MDB climate finance commitments beyond those directed solely at developing and emerging economies, but with the focus remaining on low- and middle-income countries.
The EIB and the African Export-Import Bank (Afreximbank), Africa’s foremost multilateral trade finance institution, are directing EUR 300m of financing to support the resilience and recovery of African nations in response to the COVID-19 pandemic. The funds will ensure businesses across the continent have the working capital to sustain jobs and maintain vital imports. It also earmarks at least a quarter of the capital for climate change mitigation and adaptation, helping Africa maximize the opportunities of a green recovery.
The EIB and Dutch water utility Vitens have signed a EUR 150 million loan agreement. The financing will be used to carry out parts of Vitens’ 2020-2024 investment programme, covering the renewal and upgrading of water treatment plants, reservoirs and pumping stations, as well as distribution networks and water meters. Increasing the water reserves would act as a buffer to extreme weather events.