CESKE DRAHY ROLLING STOCK MODERNISATION III

Promoter – Financial Intermediary

CESKE DRAHY AS

Location

• Czech Republic

Description

Acquisition of 20 new locomotives and 182 coaches, as well as retrofit of around 191 units of existing fleet with European Rail Traffic Management System (ERTMS).

Objectives

The new rolling stock is expected to contribute to reducing the journey time, promoting more efficient operation, reducing maintenance costs, lowering energy consumption and increasing the level of comfort for passengers. By improving the quality of service and extending the rail service to new destinations, the new rolling stock is expected to help railways compete with other modes, particularly private vehicles, so as to maintain or improve its modal share. Shifting passenger flows from other modes to rail may result in reduced vehicle operation costs, safety and environmental benefits. By installing ERTMS and contributing to achieving interoperability of the EU railways system, the project is expected to improve reliability, frequency of the services and safety.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

CZK 6392 million (EUR 260 million)

Total cost (Approximate amount)

CZK 13000 million (EUR 528 million)

Environmental aspects

The project does not fall under either Annex I or Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU. The need of EIA and/or assessment according to the Habitats Directive for associated facilities (e.g. maintenance workshops or depots) will be analysed during the appraisal. In addition, the arrangements for the scrapping of the replaced stock will be checked during appraisal. All else equal, the project is expected to have a positive environmental impact by helping the railways to maintain modal share in key sections of the passenger market that are most appropriately met by rail.

Procurement

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/EU, where applicable, as well as Directive 92/13/EEC, as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Under appraisal - 31/07/2023