The European Union is supporting a major water infrastructure modernisation project in the Czech Republic’s Ústí nad Labem Region with a €14 million grant and a €56 million loan from the European Investment Bank (EIB) under the Public Sector Loan Facility (PSLF) of the Just Transition Mechanism. The project has a total estimated value of €77 million and is being implemented by Severočeská vodárenská společnost (SVS).
The investment is designed to strengthen water management infrastructure while supporting the region’s long-term economic transition away from its historic dependence on coal mining and heavy industry. The project will modernise water treatment plants, wastewater treatment facilities, water distribution systems, storage reservoirs, and sewer infrastructure. It will also eliminate untreated sewer discharges, helping to reduce pollution and improve the reliability of water services.
Approximately 300,000 residents are expected to benefit from improved access to safe drinking water and enhanced public health protection through more efficient and dependable water infrastructure. The investment will also improve the efficiency of water services, reduce water losses, and strengthen the overall performance of the regional water network.
The project will deliver significant environmental benefits by reducing pollution in local waterways, particularly within the Bílý Potok Brook and Elbe River catchments. Since these water systems also supply drinking water to Dresden, Germany, the initiative will also provide valuable cross-border environmental benefits. In addition, the upgraded infrastructure is expected to reduce carbon emissions by approximately 1,300 tonnes of CO₂ each year, supporting climate goals through improved energy efficiency and modern water management technologies.
The funding forms part of the European Union’s Public Sector Loan Facility, a key component of the Just Transition Mechanism, which helps regions most affected by the transition to climate neutrality invest in sustainable infrastructure and economic transformation. By combining EU grants with financing from the European Investment Bank, the programme supports projects that improve essential public services, strengthen environmental protection, and promote resilient regional economies.
The €77 million investment marks an important milestone in the modernisation of the Ústí nad Labem Region’s water infrastructure. By improving water quality, reducing emissions, protecting local ecosystems, and strengthening essential public services, the project highlights the European Union’s continued commitment to sustainable regional development and a fair transition to a greener future.
