Katowice will contract a loan to redevelop the City Center

The City Council of Katowice agreed today to raise a bank loan for the City Center redevelopment. The PLN 100 million loan will be obtained from the Council of Europe Development Bank (CEB). The Council’s agreement was essential to release credit procedures.

The borrowed money will be spent for redevelopment of the road junction of Pocztowa and Dworcowa Streets connecting the new Railway Station and Galeria Katowicka being under construction. Also, the loan will help to finance a redevelopment of the tram line between the Market Square and the roundabout and to revitalize the “Rawa” river’s bed. A total cost of the undertaking partially financed by the CEB is approximately PLN 280 million.

The credit will be released in three parts in the years 2011-2013. The credit period is 19 years (2011-2030). Each of the parts will be spread into 14 installments.

A long-term investment strategy says the City will contract loans for PLN 500 million in the years 2011-2013. So far, Katowice borrowed PLN 400 million in two loans from the European Investment Bank (EIB) to finance a construction of a community center in the “Dąb” district, redevelopment of “Dom Prasy”, revitalization of the Youth Palace (the first loan) as well as a construction work on the International Convention Center (ICC), the new seat of the National Polish Radio Symphony Orchestra (NPRSO) and the connecting infrastructure in the cultural district (the second loan).

Set up in 1956, the Council of Europe Development Bank has 40 Member States. 18 Central and Eastern European countries are listed among the Member States. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available to them resources raised in conditions reflecting the quality of its rating.