The European Investment Bank (EIB) has signed a loan of CZK 650 million (approx. EUR 24 million) with the City of Plzeň, in Western Bohemia, to finance municipal infrastructure projects in the areas of transport, environmental protection, education, cultural heritage and other municipal services.
Wilhelm Molterer, EIB Vice-President responsible for lending operations in the Czech Republic, who signed the EIB loan agreement with the city authorities today, stated: “Urban development is one of the key investment priorities of the EIB. Funds provided by the Bank on favourable terms will go a long way towards upgrading infrastructure in this important and vibrant city.”
This is the third EIB loan provided to Plzeň. Successful cooperation between the EIB and the municipality was established through a EUR 30 million loan signed in two tranches in 2005 and 2008, targeting investments in water infrastructure such as water retention tanks, water supply systems and sewerage facilities. A further loan of CZK 1.6 billion (some EUR 59 million) followed in 2009 to support various sectors, with a special focus on sub-projects implemented in connection with Plzeň being named European City of Culture 2015. These included the construction of a new theatre and the refurbishment of various sports facilities and the city zoo.
“The signing of a finance contract between the municipality and the EIB constitutes an important step which allows the municipality to use a loan of CZK 650 million for co-financing investments supported by the EU in the 2014-2020 programming period, namely in the areas of water infrastructure, sewerage, roads, public transport and cultural, social and sports facilities,” said Plzeň’s mayor, Martin Baxa.
