Czech Republic Rail: Modernization & Prague System Upgrade

Introduction

The Czech Ministry of the Environment has approved CZK 15 billion (EUR 616.5 million) in funding for projects aimed at procuring new EMUs and hybrid trains across eight regions and Prague, as announced through the TRANSGov 1/2024 program. The funding, provided by the State Environmental Fund of the Czech Republic (SFŽP), will replace outdated rolling stock with modern, energy-efficient units.

Project Overview

A total of 17 project proposals were submitted from 13 regions and Prague, with a combined investment request of CZK 26.5 billion (EUR 1 billion). Of these, 11 projects from eight regions and Prague received approval. The funding originates from the Modernisation Fund, financed by the EU Emissions Trading System (ETS).

Funding and Eligibility

The first call of the TRANSGov 1/2024 program invited regional authorities and Prague to submit project proposals. The aim is to replace diesel or obsolete electric passenger trains with new EMUs and hybrid trains, including battery-electric and hydrogen-powered units. The final ranking of the proposals was determined by the “specific subsidy intensity,” reflecting the ratio between expected energy savings and the requested funding amount. Successful applicants may receive up to 70% funding for diesel train replacement and up to 40% for older electric vehicle replacement. The second call for applications is expected to open in December 2025, with submissions accepted until March 2027.

Regional Deployment

The new EMUs and hybrid trains will operate in Plzeň, Moravian-Silesian, Zlín, Ústí nad Labem, South Bohemian, Vysočina, Hradec Králové, and Pardubice regions, as well as in Prague. Regions must sign public service contracts with rail operators by the end of 2026, obligating them to procure and operate the new subsidised vehicles. If regions opt not to use external operators, they may acquire the trains directly. The remaining projects are on a reserve list and may receive support if funds become available.

Prague Rail System Development

The Czech Ministry of Transport has selected a preferred option for developing the rail system in Prague, a project valued at EUR 7.3 billion. The project includes constructing two underground lines with four underground stops and a two-storey central station beneath the main railway station, resulting in five new stations and 10.6 km of tunnels. The system aims to support up to 16 trains per hour in each direction in each tunnel, increasing overall capacity and efficiency. The project seeks to reshape passenger flows across the country and support economic development by improving rail connectivity between Prague and major cities.

Conclusion

The Czech Republic is investing in modernizing its rail transport infrastructure. The initiative includes funding for new EMUs and hybrid trains and the development of the Prague rail system, aiming to improve capacity, efficiency, and connectivity while promoting sustainable transport.

Company Summary

State Environmental Fund of the Czech Republic (SFŽP): The SFŽP is the organization that approved the funding for the project.

Czech Ministry of the Environment: The ministry responsible for publishing the list of successful applicants for investment support.

Czech Ministry of Transport: The ministry that selected the preferred option to develop the rail system in Prague.

Prague: The capital city of the Czech Republic.

Pardubice: One of the regions where the new trains will operate.

Hradec Králové: One of the regions where the new trains will operate.

Vysočina: One of the regions where the new trains will operate.

South Bohemian: One of the regions where the new trains will operate.

Ústí nad Labem: One of the regions where the new trains will operate.

Zlín: One of the regions where the new trains will operate.

Moravian-Silesian: One of the regions where the new trains will operate.

Plzeň: One of the regions where the new trains will operate.

EU Emissions Trading System (ETS): The source of funding for the Modernisation Fund.