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EBRD to finance Czech railway corridor linking Vienna, Prague and Berlin
A US$ 53.6 million (ECU 42.6 million) loan from the European Bank for Reconstruction and Development (EBRD) will assist in the modernisation and upgrading of the most important main line railway corridor of the Czech Republic, Corridor I, which interconnects Vienna, Prague and Berlin. The loan, guaranteed by the Czech Republic, will go to Ceske Drahy, the national railways enterprise of the Czech Republic. Jacques de Larosière, President of the EBRD, Rudolf Mladek, General Director of Ceske Drahy, and His Excellency Karel Kühnl, Ambassador of Czech Republic to the United Kingdom, signed the agreements in London today.
At the signing, Mr de Larosière said: “Due to the limited investment in maintenance and replacement over the past decades, the railway infrastructure in the Czech Republic has been slowly deteriorating. The corridor represents the most important backbone main line corridor of the Czech railway network and forms an important segment within the European railway network. Its upgrade is critical for the future success of the Czech railways and is essential for the country because it interconnects it with neighbouring EU member countries Germany and Austria. For these reasons, this project is a meaningful investment for the Czech Republic and the EBRD is pleased to be able to assist in its financing”.
The project will upgrade the 455km Corridor I, which in the Czech Republic runs between Decin, Prague, Ceska Trbova and Breclav. The EBRD’s funds will finance signalling equipment on sections of the corridor. The completed corridor will permit improved running speeds of up to 160km/hr as well as improved safety, greater reliability of train services and reduced operating costs.
Other project funding is being provided by the European Investment Bank, The Export-Import Bank of Japan, Kreditanstalt fur Wiederaufbau (KfW) and the European Union through its Phare programme.
Ceske Drahy was created in January 1993 when the former CSFR railway company Ceskoslovenske Drahy was split into Ceske Drahy and Zeleznice Slovenske Republiky, the Slovak railway company. Ceske Drahy is undergoing a restructuring and transformation process to improve its efficiency and reduce its need for state operating subsidies.
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