Prague has approved a loan of 22.76 billion CZK from the European Investment Bank for metro line D

Prague – Prague will be able to borrow from the European Investment Bank (EIB) the equivalent of approximately 22.76 billion crowns for the construction of metro line D. Today, during a night session, the city council approved this, and the city hall already has a loan agreement with the bank. The loan will cover about half of the total construction costs of the metro. The city began building it at the end of this April.

The EIB is tasked with supporting significant development projects in the countries of the European Union. "The loan arrangement will allow costs to be spread over time and not restrict other investment activities and maintenance of the city, as historically happened, for example, with the construction of the Blanka tunnel," previously stated Deputy Mayor Pavel Vyhnánek (Prague Yours). He added that this week the EIB's administrative board approved the loan.

The city approved the loan framework, but not the details of the disbursement of the funds. "We will still vote on the final form, including documentation," Vyhnánek said. He previously mentioned that the advantage of the loan is flexibility, and it will depend on the specific financial situation of the city and the speed of the metro construction. According to Vyhnánek, Prague will be able to decide how quickly to draw the loan or how long to set the repayment delay.

The latest section of Prague's metro, the extension of line A from Dejvická to Motol, began construction after years of preparation in May 2010, with tunneling starting in the spring of 2011. The connection opened for passengers in April 2015. The construction cost approximately 20 billion crowns. Prague also borrowed from the EIB for this and some of the costs were covered by European subsidies. Previously, the city constructed the extension of line C in two phases, first from Nádraží Holešovice station to Ládví and later to Letňany. The first section was opened in June 2004 and cost nearly nine billion CZK. Of that, four billion CZK came from a loan from the EIB and over 660 million CZK from bonds. The second section was put into operation in May 2008 and cost 15.5 billion CZK. Again, the city utilized a loan of more than two billion from the EIB.