€117m loan flows to Czech water projects(3)

The European Investment Bank is to lend around €117m to water infrastructure projects in the Czech Republic. It is the bank's third such loan.

The European Investment Bank (EIB) has agreed to lend CZK 3 billion (€117 million; $165 million) to water infrastructure projects in the Czech Republic.

The loan is set to help finance the improvement and expansion of drinking water supply and waste water infrastructure in the country, and is the third such loan targeting the Czech water sector.

The agreement is between the EIB and project promoter the Czech ministry of agriculture, with municipalities and joint-stock companies set to be the ultimate beneficiaries of the finance. The funds will be used to co-finance local investments in order to assist the Czech Republic in meeting EU requirements in the water sector, and will be provided on favourable terms. The loan will specifically target around 110,000 people living in a large number of small-sized municipalities across the country.

Since 1990 the EIB has lent €10.8 billion to the Czech Republic, including €1.2 billion in the water sector.

Earlier this month the bank lent £360 million (€422 million; $594million) to the UK’s National Grid to help the company upgrade and extend its gas distribution networks.