Polish Rail Project Obtains Eur 450 Million Financing

The European Investment Bank (EIB) and PKP Polskie Linie Kolejowe (PKP PLK) have concluded a new loan agreement worth PLN 2 billion (EUR 450 million) for the modernisation of No.8 railway line in southern Poland.

“The expansion of rail connections is particularly important because it contributes to improved mobility and regional development, while also supporting the climate and environment. The EIB and PLK SA have a long-standing partnership for sustainable rail connections. The latest agreement will improve passenger services and freight transport in southern Poland, and we expect further stages of our cooperation soon,” said EIB Vice-President, Professor Teresa Czerwińska.

The project involves the modernisation of the Skarżysko-Kamienna – Kielce Główne – Kozłów section of railway line No. 8 and includes, among other things, the replacement of platforms, tracks, traction network, and train traffic control systems, as well as the construction of new viaducts and underground passages.

Modern platforms will be constructed at stations and stops, ensuring full accessibility for people with reduced mobility. New grade-separated junctions will be built, and upgraded equipment at level crossings will also enhance safety. By increasing train speeds to 120 km/h and adding extra tracks at stations, the capacity of this section will be significantly improved.

The route, which connects the Świętokrzyskie region along the north-south axis, will offer new opportunities for the transport of both passengers and goods.

This strategic investment for the Świętokrzyskie Voivodeship entails the complete reconstruction and modernisation of railway infrastructure along the most important route in the region, linking Kielce with Kraków, Łódź, Radom, and Warsaw, and playing a crucial role in freight transport across this part of Poland.

The comprehensive upgrade of infrastructure on the region’s primary railway route will enhance the safety and capacity of the line, which is vital for freight transport in the area. Higher train speeds and better rail access will positively impact the sustainable development of the Świętokrzyskie Voivodeship.

“We continue to strengthen the Polish economy through new, multi-billion-zloty investments in the railway. We actively make use of external sources of financing, as exemplified by this latest agreement with the EIB. Recently, PLK SA has launched tenders worth almost PLN 30 billion [EUR 7 billion],” said Małgorzata Kuczewska-Łaska, Member of the Management Board of PLK SA.

The modernisation of No.8 railway line in southern Poland is essential, as it is one of the region’s most important rail corridors. It will improve both passenger and freight transport services, while supporting climate and environmental goals through the development of sustainable regional transport. The investment promotes low-emission transport and the development of the Świętokrzyskie region, contributing to the European Union’s climate and cohesion policy objectives.

The project, titled “Works on railway line No. 8 on the Skarżysko-Kamienna – Kielce – Kozłów section”, includes the modernisation of a key transport route for the region. The undertaking is divided into three stages. The design documentation for the Skarżysko-Kamienna – Tumlin and Sitkówka Nowiny – Kozłów sections has already been completed, with co-financing from the European Union under the Infrastructure and Environment Operational Programme. PKP PLK is preparing the design documentation for the Sitkówka Nowiny – Tumlin section, which also includes Kielce Główne station.

In November 2024, PKP PLK began work on the southern section of railway line No. 8. This investment, worth over PLN 300 million (EUR 70 million), covers the modernisation of 11 km of track, along with the Kozłów station and the Klimontów stop. These works are scheduled for completion in 2027. A year later, the Polish rail infrastructure manager plans to complete work on the northern section of this railway line, between Skarżysko-Kamienna and Tumlin, for which the tender procedure is currently underway. This part of the investment is also seeking co-financing from the European Union under the European Funds for Eastern Poland programme. The entire project is part of the National Railway Programme, with completion expected by 2032.

In 2024, the EIB Group allocated over EUR 1.3 billion for local, regional, and national transport investments in Poland, representing over 20% of the Bank’s financing in the country last year. EIB lending to PKP PLK under 20 agreements concluded to date now exceeds EUR 4.6 billion. Other EIB clients include PKP Intercity, with the most recent rail investment in Poland concerning the modernisation of power supply systems. Further financing for new PKP Group projects is anticipated to total an additional EUR 1.3 billion.