Slovakia: Košice to boost sustainable urban development with €20 million EIB loan and EU grant support

• EIB lends €20 million to Košice in Eastern Slovakia for sustainable urban development and a just transition.
• Financing will support energy-efficient public buildings, stronger social infrastructure and sustainable urban mobility to improve quality of life for residents.
• Košice is the first city in Slovakia to benefit from EU grant support under the Public Sector Loan Facility of the Just Transition Mechanism.

The European Investment Bank (EIB) is providing up to €20 million to the City of Košice to support sustainable urban development in Slovakia’s second-largest city. The funds will enable the city to accelerate the implementation of prepared investments and bring them together into a coherent programme for the modernisation of municipal infrastructure.

The programme will focus on projects with a direct impact on residents’ everyday lives – better public services, more energy-efficient municipal buildings, improved accessibility, safer movement around the city and a more resilient urban environment. The investments will also support the city’s climate objectives and its just transition.

“This EIB loan helps Košice invest in its future – making the city greener, improving quality of life for residents and making the region more attractive for business and job creation,” said EIB Vice-President Marek Mora, responsible for EIB operations in Slovakia. “By combining long-term EIB financing with EU grant support, we are backing a fair green transition in Eastern Slovakia and helping ensure that no community is left behind.”

“We are the first city in Slovakia that, in addition to an EIB loan, will also receive a grant of more than €4 million. The fact that we have managed to secure such significant financial resources for investments in the city is a testament not only to the quality of the prepared projects, but also to the efficient work of the city. Thanks to this, the people of Košice will soon benefit from modernised primary schools on Hroncova, Masarykova and L. Novomeského streets, a reconstructed polyclinic building in the KVP housing estate, a centre for mothers with children at Adlerova 4, the entrance building and premises at the zoo, as well as a renovated building for employees of the Municipal Greenery Administration. The underpass at Trieda L. Svobodu – Postupimská will also be reconstructed, a new cycle route will be built on Alejová Street, and the road to Bankov will be renewed. The funds will also be used to modernise the composting facility in Bernátovce, the Staničná Primary School building and to construct a new senior care facility on Gerlachovská Street,” said Jaroslav Polaček, Mayor of Košice.

Košice has also secured an EU grant of €4.3 million alongside the EIB loan from the Public Sector Loan Facility (PSLF), which is part of the Just Transition Mechanism and helps regions manage the transition to a greener economy.

Around 85% of the total investment supports climate action, mainly through energy savings and clean energy solutions in buildings. These measures will cut carbon emissions and improve air quality. By upgrading public infrastructure, the project will strengthen economic and social cohesion in Eastern Slovakia. It will help narrow regional disparities, raise living standards and make Košice a more attractive place to live, work and invest.

The EIB support for Košice builds on a long-standing commitment to regional development across Slovakia. Total EIB investment in regional and municipal projects across Slovakia amounts to around €407 million.

These investments improve connectivity, public services and climate resilience, while supporting jobs and local growth. They also reflect the EIB’s long-term commitment to strengthening cohesion and supporting balanced, sustainable development across Slovak regions and the European Union.

Background information

The EIB Group   

The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations. 

The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium size businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilizes private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs. 

In 2023, the EIF together with six member states (France, Germany, Italy, Spain, Belgium and the Netherlands) launched the European Tech Champions Initiative, a fund of funds to scale-up innovative startups. This initiative has already enabled the creation of 13 European venture capital mega-funds and scaled up 38 companies, including 11 unicorns (with more than €1 billion in capital). 

The City of Košice

Košice is the second-largest city in the Slovak Republic and the natural economic, cultural, university and administrative centre of Eastern Slovakia. The city plays an important role not only for its residents, but also for the wider functional region, as it is an important centre for commuting, education, public services and regional development.

In recent years, Košice has been systematically strengthening its position in sustainable urban development and climate transformation. The city is among the European cities participating in the EU Mission for Climate-Neutral and Smart Cities and has prepared its Climate City Contract, which frames its commitments in emission reduction, public building renovation, sustainable mobility, climate adaptation and inclusive urban development.

Košice also builds on several years of experience in preparing and implementing projects financed from structural funds, European programmes, the Recovery and Resilience Plan and national grant schemes. Past investments and projects under preparation focus mainly on the energy efficiency of public buildings, the modernisation of schools, social and healthcare infrastructure, the renewal of public spaces, sustainable mobility and improving the quality of public services.

Cooperation with the European Investment Bank and support from the Public Sector Loan Facility (PSLF) represent a further step in transforming individual projects into a coherent investment programme. Its aim is to accelerate the modernisation of municipal infrastructure, reduce the energy intensity of public buildings, improve access to services for residents and support the just transition of the city and the region.