Karlovy Vary has almost exhausted a CZK 700 million loan for important investments and reconstructions in the town. The loan was taken out by the city in 2020 with the proviso that its use would be linked to a predetermined list of necessary investment events. Gradual drawdowns have since reduced the loan balance to just the last 44.4 million, according to Mayor Andrea Pfeffer Ferklová (ANO).
The CZK 700 million loan is intended mainly for investment projects for which the city cannot obtain subsidies. However, several of them were also supported by subsidies, such as the reconstruction of the Mill Colonnade, the reconstruction of areas in Varšavská Street or the repair of the Athletic Stadium in Tuhnice. In total, the city has so far received CZK 146 million for the actions included in the stack of investment actions.
The most expensive action, which was financed with the help of the loan, was the construction of a new Dvorský Bridge, which replaced the existing, no longer satisfactory one. It cost over 150 million. Other major projects that were paid for by the city only from its own funds or from a loan included the reconstruction of the Spring Colonnade for more than CZK 50 million, the construction of the Ohře River embankment for CZK 55 million, and repairs to the retaining walls and the intersection on Bezručova Street for CZK 47 million.
The city wanted to draw down the loan between 2020 and 2023, but it is possible that the rest will be drawn down next year. Karlovy Vary is to repay the loan with a three-year delay, i.e. from 2026, over a period of 15 years. The deferred repayment is to follow the repayment of the loan the city had for the construction of the KV Arena.
But the exhaustion of the loan does not mean that the city has put all major investments behind it. On the contrary, many of them are yet to be made by the city and some of them are urgent. These include the reconstruction of the historic Cheb Bridge, which is estimated to cost CZK 300 million. Sooner or later the Ostrov bridges complex will also need repairs. In addition, the city expects that a completely new bridge will be built, connecting to today’s Charkovská Street.
That is why the city is looking for partners for some investments, for example for the reconstruction of the Elizabeth Baths. Similarly, an external partner could help with financing for the housing development that the city is preparing in Krokova Street.
