EIB lends Poland’s top utility €230m to upgrade power systems on rail network
21 August 2024
Polska Grupa Energetyczna (PGE), an electric power distribution company, received a PLN 1 billion loan (€230 million) from the European Investment Bank (EIB) to upgrade power systems for Poland’s railway network.
The agreement also covers the construction of high-voltage and medium-voltage power lines, as well as the accompanying infrastructure for efficient power supply to the domestic rail network (Photo: AdobeStock)
The European Investment Bank (EIB) signed an 18-year credit agreement with the group, marking its sixth contract with them. The EIB stated that the group currently benefits from credit lines at the bank amounting to over €1.3 billion.
“We are a proven partner for large infrastructure investments in Poland,” said Teresa Czerwińska, vice president at the EIB.
“The modernisation of railway lines enhances the quality of life for residents and is beneficial for business. It is also conducive to sustainable development, which is a key priority for the European Union.”
The contract includes the construction of 43 electrical substations in Poland. These substations are said to convert electrical energy from alternating current (AC) to direct current (DC) to power trains.
Additionally, 24 substations will undergo modernisation. The agreement also covers the construction of high-voltage and medium-voltage power lines, as well as the accompanying infrastructure for efficient power supply to the domestic rail network.
Works by subsidiary PGE Energetyka Kolejowa to be completed in 2028.
