Poland: EIB loans to Radom and Legnica signal ongoing support for mid-sized cities

EIB loans to Radom signal ongoing support for Poland’s mid-sized cities

• Third and final tranche of a EUR 42m loan for urban development projects in Radom signed today at the European Economic Congress in Katowice
• In April, the city of Legnica signed a EUR 32m loan – its first direct loan with the EU bank
• Overall, around 25 cities in Poland have been supported by the EIB since 1990

Signature with Radom

Safer roads, modern municipal facilities and better-insulated public buildings are part of a wide range of urban projects carried out by the City of Radom, which will benefit from a 180 mln PLN (42 mln EUR) framework loan from the European Investment Bank (EIB). An agreement for the third and last tranche of the loan, worth 80, 5 mln PLN was signed today on the side-lines of the European Economic Congress in Katowice by Mayor of Radom, Radosław Witkowski, and EIB Vice-President Vazil Hudák. The framework loan was approved in 2016.

“We are delighted to confirm our financial support for the City of Radom,” said Vazil Hudák. “The EIB has been helping the City over the past decade to implement its urban development plans and make Radom an attractive place to live and do business. The city will enjoy better mobility and municipal services, while part of the loan will also go to energy efficiency projects, which bring wider benefits for the whole community in terms of lower energy bills and a cleaner environment.”

75% of the EUR 42m framework loan will target investments in urban roads and facilities for public transport and vulnerable road users, while the remaining 25% will go to broader urban regeneration and revitalisation projects, including thermo-modernisation measures in public buildings and schools.

This loan is actually the second loan of this type provided by the EIB to Radom, a city with 215 000 inhabitants located in the Mazovia region. A first framework loan for PLN 300m (EUR 70m) was signed in 2010 and the funds have been fully used by the city. This brings total EIB lending to Radom to over PLN 480m (approx. EUR 112m) since 2010.

Loan to Legnica

Since 1990, the EIB has supported the regeneration and development plans of around 25 cities in Poland. New initiatives are also emerging. On 26 April, the Bank signed its first direct loan agreement for PLN 136m (EUR 32m) with the City of Legnica, the third biggest city in the Lower Silesia region, with a population of just above 100 000. The financing will support investment in municipal infrastructure and urban revitalisation in this city.

All of Lower Silesia’s three largest centres – Wałbrzych, Wrocław and Legnica – are now benefiting from EIB financing, which comes traditionally with attractive interest rates and long maturities. “Silesia and Lower Silesia are working their way out of dependence on mining and heavy industry and the EIB is actively supporting the region with its transformation to a more diversified economy, with a greener environment”, said EIB Vice-President Vazil Hudák.

Katowice, the venue of the European Economic Congress, is another good example of cooperation between local authorities and the EU bank. With EUR 205 million of direct loans over 20 years, the EIB has helped the city’s transition to a low-carbon economy.