Following the 10th cut-off under the first call for proposals of the Public Sector Loan Facility (PSLF), the European Commission is pleased to announce that 19 projects have been selected for funding, with a total requested grant amount of €252 million. A total of 24 applications were received from 12 EU Member States (Austria, Bulgaria, Cyprus, Czechia, Finland, Germany, Greece, Latvia, Lithuania, Poland, Romania, and Slovakia), requesting nearly €280 million in EU funding.
The selected projects are:
| Bulgaria | - Construction of five photovoltaic plants and battery energy storage systems (BESS) within the Maritsa Iztok Complex, Bulgaria’s third largest power plant, located in the Stara Zagora Region. Grant requested: €88.4 million.
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| Cyprus | - Upgrade of the electricity transmission network of Cyprus. Grant requested: €6.86 million.
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| Czechia | - Two projects implemented by Správa železnic, the Czech railway administration:
- Reconstruction of the Chomutov – Kadaň-Prunéřov section of the Ústí nad Labem – Karlovy Vary railway corridor in Ústí nad Labem. Grant requested: €24.16 million.
- Construction of two new fire rescue service sites in Cheb and Ústí nad Labem. Grant requested: €2.58 million.
- Modernisation of the water management infrastructure in the Ústí Region implemented by Severočeská vodárenská. Grant requested: €13.9 million.
- Comprehensive modernisation of urban infrastructure by the Ústí nad Labem Municipality. Grant requested: €10.65 million.
- Reconstruction of an outdoor swimming pool in Kopřivnice, a town in the Moravian-Silesian Region. Grant requested: €1.02 million.
- Construction of a new, modern and energy-efficient public vocational, secondary school building in Sokolov, Karlovy Vary Region. Grant requested: €3.04 million.
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Finland | - Construction and modernisation of public social and educational facilities in the city of Joensuu, located in North Karelia. Gant requested: €18 million.
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Germany | - Modernisation of the electricity network infrastructure in the Sachsen Lausitz Region. Grant requested: €20.1 million.
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Greece | - Construction of new schools, digitalisation of regional services and public administration, energy efficiency measures in the Peloponnese Region. Grant requested: € 11.48 million.
- Construction a new school complex to replace earthquake-damaged educational infrastructure in the municipality of Kissamos in Crete. Grant requested: €3.54 million.
- Public infrastructure investments across areas such as tourism, transport, health, urban regeneration and education to support Western Macedonia Region’s green transition. Grant requested: €19.8 million.
- An investment composed of 4 subprojects focused on safe tourism, blue-economy support, digitalised livestock and agri-food R&I to support North Aegean Region’s green transition. Grant requested: €3.6 million.
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Lithuania | - Modernisation of the Kauno Energija’s power grid to support integration of renewable heat and power sources. Grant requested: €3.24 million.
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Romania | - Modernisation of Ploiești’s public transport by acquiring 20 new electric trams and upgrading the existing depot. Grant requested: €9 million.
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Slovakia | - Modernisation of Kosice’s urban infrastructure through two key initiatives: a comprehensive renovation of educational, administrative, healthcare, and social housing buildings, alongside upgrades to an underpass, roads, and cycling paths. Simultaneously, 10 fossil-fuel buses will be replaced with electric articulated models, and five public technical/administrative buildings will undergo revitalisation, boosting sustainability and urban infrastructure. Grant requested: €4.27 million and €3.6 million.
- Modernisation of Banská Bystrica’s urban infrastructure by renovating 20 educational facilities, 16 social-care institutions, and 5 cultural sites; rehabilitating 67 km of regional roads to enhance connectivity; and implementing an integrated enterprise resource planning system to streamline municipal operations and administrative efficiency. Grant requested: €5 million.
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Background
The Public Sector Loan Facility (PSLF) is an instrument under the Just Transition Mechanism (JTM) that aims at alleviating the social and economic effects of the transition of the EU regions towards climate neutrality. It is a blending facility that combines loans from the European Investment Bank (EIB) (up to around €6-8 billion) with grants from the European Commission (up to €1.3 billion) to help mainly public sector entities in the most affected EU regions (identified in the territorial just transition plans) to mobilise additional public investments and meet their development needs in the transition to a climate-neutral economy.
The territorial just transition plans are drawn up by each EU Member State and outline the challenges to be addressed in each just transition region, together with the development needs and targets to be reached by 2030.
Each selected project will receive a PSLF grant, provided the project receives also a loan from the EIB. The PSLF grant is calculated as a share of the EIB loan amount (15%, or 25% if the project benefits a less developed region). This blended support is designed to leverage public investments in the EU regions most affected by the transition to climate-neutral economy.
The first PSLF call for proposals, based on national allocations, was launched on 19 July 2022 and included 10 intermediate cut-offs until the end of 2025. The above selection thus closes the first call for proposals.
On 23 October 2025, the second call for proposals, using the remaining funding from the first call, was published on a competitive basis (without national allocations), with several cut-off dates scheduled in 2026-2027. Applications are open and the next cut-off is on 27 January 2026.
The European Climate, Infrastructure and Environment Executive Agency (CINEA) is responsible for the implementation of the PSLF.
