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Namestie Maratonu mieru 1
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Analysis on Current Investment Environment

Skk 1.4 billion loan from EIB to the Kosice self-governing region

Thursday | Thursday, December 07, 2006

The European Investment Bank (EIB) is lending SKK 1.4 billion (approx. EUR 39 million) for upgrading mainly transport infrastructure in the Kosice Region, being the second direct EIB loan provided to a regional administration in Slovakia.

Substantial part of the EIB loan (1,1 billion SKK) is planned for improvement of transport infrastructure. The loan will part-finance priority projects already approved and included in the 2005-2009 investment programme of the Kosice Region as well as, for a smaller part, projects to be defined and approved later. Selected projects in the area of transport will help rehabilitate over 100 road sections and bridges on the regional network. By modernising the Class II and III roads and improving their safety, the loan will allow the Region to deal with increasing traffic and enhance its growth prospects. The EIB funds will be also used to finance the reconstruction of cultural facilities (e.g. Eastern Slovakian Museum), which will increase the Region’s attractiveness for tourists.

Possible future projects could be in education, culture and social care sectors. Upgrading schools aiming at optimising their capacity and reducing the energy consumption is given particular attention. Some of the projects are expected to be co-financed by the EU Structural Funds. „Through the EIB funds we will significantly provide for development of the region also in terms of tourism and creating conditions for investors“ Zdenko Trebula, the President of KSK said.

As Ivan Pilip, the EIB Vice-President responsible for the Bank’s operations in Slovakia said, „by providing direct access to EIB funds on favourable terms, particularly for upgrading of regional transport infrastructure, the Bank will assist the regional authorities in satisfying local investment needs and strengthening regional competitiveness”.