DLA Piper has advised PGE Polska Grupa Energetyczna S.A. on a PLN 1 billion loan from the European Investment Bank.
The loan was announced on July 29, 2024, and, according to the EIB, represents its sixth contract with the group, which currently benefits from credit lines at the bank topping EUR 1.3 billion. The contract covers the construction of 43 electrical substations, which convert electrical energy from alternating current to direct current needed to power trains in Poland, as well as the modernization of 24 substations. In addition, it includes the construction of high-voltage and medium-voltage power lines, as well as accompanying infrastructure for efficient power supply to the domestic rail network.
"We are a proven partner for large infrastructure investments in Poland," commented EIB Vice-President Teresa Czerwimska. "The modernization 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."
"Both the specific nature of electricity supply to the railway sector and the growing demands of rail carriers require us to take very specific actions that will guarantee the adequate capacity and efficiency of railway power systems," said PGE Group Management Board Vice-President Przemyslaw Jastrzebski. "Cooperation with the EIB gives us the tools we need to carry out those tasks. Thanks to the obtained funds, we will be able to invest in modern power infrastructure and develop innovative renewable energy projects – such as recuperating and storing energy from breaking trains – that accelerate the transformation of the Polish power system."
According to the EIB, the project is in line with the EU’s goal of promoting sustainable transport. Better rail connections will accelerate regional convergence, ease road traffic congestion, and reduce energy consumption, air pollution, and noise in Poland.
The DLA Piper team was led by Counsel Aleksander Haleniuk and included Partner Mariusz Hyla and Junior Associate Szymon Piotrowski.
