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EIB and Ceska Sporitelna Partner on Affordable Housing Project in Prague

Strategic Insights

— 1 min read

The European Investment Bank (EIB) and Czech bank Ceska Sporitelna have announced a pioneering initiative to address the housing crunch in Prague by building over 700 apartments for public-sector employees. The project is the first of its kind in the Czech Republic and aims to increase the availability of affordable housing in the capital city.

Key Takeaways:

  • The EIB will finance up to EUR60 million of the project, which aims to build more than 700 apartments in four locations in Prague for public-service employees.
  • The total project cost is EUR187.5 million, with the remaining sum coming from a Ceska Sporitelna subsidiary called DBCS.
  • The project is designed to benefit key public-sector employees, including nurses, teachers, police officers, and administrators, who often struggle to afford market-rate rents or home ownership.
  • The new homes will be environmentally sustainable with top energy-efficiency standards, reducing energy consumption and long-term costs for residents.
  • The project builds on a successful EIB-backed initiative in Austria and represents a promising approach to the development of affordable housing in central Europe.
  • The project is expected to generate employment during the construction phase and offer long-term housing solutions for essential workers.

Statistics:

  • Over 700 new apartments will be built across four locations in Prague.
  • The EIB credit is worth up to EUR60 million, representing almost a third of the total project cost.
  • The project aims to benefit key public-sector employees, including nurses, teachers, police officers, and administrators.
  • The total project cost is EUR187.5 million.
  • The project is designed to achieve PENB A and PENB B ratings, ensuring that the new housing units are environmentally sustainable.

Sources:

  • European Investment Bank Press Release
  • Ceska Sporitelna Press Release
  • EIB Vice-President Kyriacos Kakouris interview
  • Ceska Sporitelna Chief Executive Officer Tomas Salomon interview
  • EIB Vice-President Ioannis Tsakiris interview
  • Czech Prime Minister Petr Fiala statement
  • InvestEU Advisory Hub press release

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