Last year, the European Investment Bank supported projects worth 1.85 billion euros in the Czech Republic

Last year, the European Investment Bank supported projects worth 1.85 billion euros in the Czech Republic

The European Investment Bank supported projects worth 1.85 billion euros in the Czech Republic last year

Czech banknotes, crowns, bank safe – illustration photo.

Prague – The European Investment Bank (EIB) Group supported projects worth 1.85 billion euros (44 billion crowns) in the Czech Republic last year. The money was directed mainly to energy development or transport projects. EIB Vice President Lilyana Pavlovová stated this at a press conference in Prague today. In 2021, the EIB in the Czech Republic supported projects worth 1.19 billion euros (28.3 billion crowns), a total of 27.57 billion euros (655.7 billion crowns) over the 30 years of operation in the Czech Republic. The EIB will provide the ČEZ Group's Inven Capital fund with more than a billion crowns to invest in innovation.

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The energy company ČEZ received the largest support of 790 million euros (18.8 billion crowns) for the development of the electricity distribution system. Support of 92 million euros (2.2 billion crowns) for the ČEPS company was also aimed at the development of the energy infrastructure. The EIB also supported the modernization of railway transport when it provided 36 million euros (850 million crowns) for the purchase of on-board units of the European security system for Czech Railways trains.

The EIB's priorities in the Czech Republic will continue to be investments in the development of railway transport, including the introduction of the European security system ETCS. In the future, the EIB plans to further support rail transport in the Czech Republic. Pavlovová stated that in the first half of this year, the bank could release the first billion euros (23.8 billion crowns) for the development of local tracks from the seven billion framework, which EIB representatives agreed with the Ministry of Transport and the Railway Administration last year.

< p>The bank will also support the development of the energy network with an emphasis on renewable energy sources and energy independence, Pavlovová said. Among the supported projects is the construction of the new metro line D in Prague. The bank also wants to continue to support Czech aid to refugees from Ukraine, especially their education and the availability of care. Pavlovová recalled that last year the EIB provided the Czech Republic with 200 million euros (4.8 billion crowns) for these purposes.

The Czech government wants to use the money to modernize transport, including the metro, and ensure energy self-sufficiency, which will lead to greater energy independence, said Deputy Minister of Finance Jiří Valenta. The government will draw three large loans for the modernization of the railway infrastructure, for water management and for the care of refugees from Ukraine.

The European Investment Bank is an institution of the European Union that specializes in providing long-term loans. Its shareholders are EU member states. It makes money available for viable projects and thereby contributes to the achievement of the EU's political goals.

The EIB will provide the ČEZ fund with more than one billion crowns for investments in innovation

The European Investment Bank (EIB) will provide an additional 50 million euros (about 1.19 billion crowns) to the Czech Inven Capital fund of the ČEZ Group for investments in climate-friendly start-ups. ČTK was informed about this today by ČEZ. The first 50 million euros were invested by the EIB together with the Inven fund in the previous five years.

“Inven Capital is gradually expanding its investment scope,” said Tomáš Pleskač, member of the board of directors and director of the New Energy and Distribution Division of ČEZ. According to ČEZ, the money will go to innovative small and medium-sized enterprises and mid-cap companies in the EU that are dedicated to clean technologies and decarbonization. Specifically, the money will be used to develop solutions to reduce the carbon footprint and other negative impacts in a number of fields, from agriculture to industry or transport to energy. According to the group, some of Invenu's investments are also intended to reduce energy consumption and thereby reduce consumers' dependence on gas supplies from unstable and unreliable countries.

So far, Inven Capital and the EIB have jointly invested in companies whose goal is to reduce greenhouse gas emissions in Europe. For example, according to ČEZ, investments in the Czech portfolio company Woltair contributed to the reduction of more than 8,000 tons of carbon dioxide per year through the installation of heat pumps and photovoltaic modules. The German company Tado°, which produces smart thermostats, calculated the savings in carbon dioxide emissions due to higher energy efficiency at 730,000 tons since 2013.

According to EIB Vice President Lilyana Pavlova, Inven is the ideal partner for rapid implementation in the key market for energy transformation of the EU. “It significantly increases funding to support targeted innovative SMEs and brings additional expertise. In the current crisis, it is crucial that we work with trusted partners to provide much-needed support for European businesses, using this crisis as an opportunity to move towards a cleaner and more sustainable energy production,” said Pavlovová.

CEZ founded Inven Capital at the end of 2013, then under the name ČEZ Nová energetika. According to the energy company, the total value of assets managed by Inven, which functions as a fund, exceeded 500 million euros ( approximately 11.9 billion crowns). ČEZ stated that it provided a fund of over 210 million euros (almost five billion crowns) for the period 2022 to 2027. Together with the contribution of the EIB, the fund thus has more than 260 million euros for new investments (about 6.18 billion crowns).