📋 Tender Overview
EIB
The European Union supports a major investment in water infrastructure in the Ústí nad Labem Region in north-western Czechia to enhance the local water management systems. The project, with an estimated budget of € 77 million, receives support under the Public Sector Loan Facility (PSLF), combining an EU grant of €14 million with a €56 million loan from the European Investment Bank (EIB).
Severo?eská vodárenská spole?nost, the Czech water utility company, implements the project, which focuses on modernising water infrastructure in a region undergoing a structural transformation as it moves away from its historical reliance on mining and heavy coal-based industry.
The project includes a comprehensive set of upgrades across the regional water system, including the reconstruction of water treatment plants and wastewater treatment facilities, upgrades to water distribution infrastructure, modernisation of water mains and storage reservoirs, and the elimination of untreated sewer outfalls.
The project will deliver significant social benefits by improving access to safe drinking water for approximately 300 000 inhabitants. It will strengthen public health protection through better water quality and more reliable water services.
The investment also supports the long-term economic transformation of the Ústí nad Labem coal region, contributing to a more sustainable and resilient economic model. It will improve the efficiency of water services, reduce water losses, and strengthen the overall performance of the regional water network.
In addition, the project will bring significant environmental benefits by optimising wastewater treatment processes and eliminating untreated sewer outfalls, thereby reducing pollution in local watercourses. The intervention will deliver benefits for the Bílý Potok Brook and Elbe River catchments in the Ústí nad Labem Region, improving ecological conditions and biodiversity. As these waterways also supply drinking water to Dresden in Germany, the project will generate important cross-border environmental benefits. Furthermore, the project will contribute to climate mitigation, with estimated CO? emissions savings of approximately 1,300 tonnes per year, equivalent to removing around 300 cars from the road annually or offsetting the annual carbon footprint of approximately 280 EU residents.
Bronislav Špi?ák, CEO of Severo?eská vodárenská spole?nost (SVS), stated:
“Thanks to the secured funding, we will be able to take better care of our water infrastructure, introduce modern technologies, and, last but not least, adapt our processes to meet increasingly strict legislation and the new challenges facing the water sector. This includes improving the energy efficiency of water operations, the necessary reinforcement of both cyber and physical security, as well as requirements for responsible water management and climate change adaptation.”
Emma Toledano, Deputy Director-General for Programme Implementation at the European Commission's DG REGIO, added:
“Supporting regions most affected by the climate transition is at the heart of the European Commission’s commitment to a fair transition for all. We are proud to support this important project in the Ústí nad Labem Region through the Public Sector Loan Facility to modernise essential water infrastructure, improving the quality of life for local communities and the protection of the environment. It shows how EU cohesion policy is helping such regions build a more resilient and sustainable future together with the support from the Just Transition Fund and the PSLF in the Czech Republic, including in sustainable transport, urban infrastructure and the Ostrava concert hall.”
Paloma Aba Garrote, Director of CINEA, said:
“The project is an excellent example of how EU support can contribute to strengthening regional water services and delivering lasting benefits for citizens, the environment and the local economy. By investing in resilient water infrastructure, the project will improve water safety and security, protect the environment and support the region’s transition towards a more sustainable future.”
EIB Vice President Marek Mora said:
“The Ústí nad Labem Region is a long-standing EIB partner. We are already working with the region on its urban revitalization. This new €56 million loan builds on that cooperation and will help modernise the region’s water treatment infrastructure, making it safer, more reliable, and ready for the future. Cohesion is at the core of the EIB’s mission for just transition across Europe. We help regions invest in modern infrastructure, strengthen competitiveness, and improve quality of life for their citizens. Reliable water and wastewater systems are a key part of that effort.”
Background information
The Public Sector Loan Facility (PSLF) was established by the European Union as one of the three pillars of the Just Transition Mechanism (JTM) to ensure that the transition towards climate neutrality leaves no region behind. By supporting investments in territories facing the most transition challenges, the PSLF contributes to a fair transition for all, while strengthening competitiveness.
The PSLF supports public and public-mandated entities in implementing investments that address the social, economic and environmental impacts of the climate transition in the most affected EU regions. It combines loans from the European Investment Bank (EIB) with grants from the European Commission, enabling projects aligned with the Territorial Just Transition Plans (TJTPs) prepared by EU Member States.
The first call for proposals, organised around ten intermediate cut-off dates and implemented based on national allocations, was open from 19 July 2022 to 31 December 2025. Read about its results in the CINEA article on Advancing the Just Transition in Europe: Results of the first PSLF call for proposals - European Climate, Infrastructure and Environment Executive Agency
Building on the first call, a second
