The European Investment Bank (EIB) has approved a €120 million loan for the rehabilitation and modernisation of a 58km section railway in Poland.

The line forms part of the trans-European transport axis - the E59 European rail corridor that runs south from the Swedish municipality of Malmo, linking it with Ystad and the Polish city of Szczecin, then running south-east to the Polish cities of Poznan, Wroclaw and Chalupki before crossing into the Czech Republic to link with Ostrava.

The EIB loan will finance the upgrading of the existing twin-track railway line from Wroclaw to the border of the Lower Silesia Voivodship in southern Poland, allowing trains to run at a maximum speed of 160km per hour.

This section is the first part of the planned modernisation of the 164km stretch of E59 track between Wroclaw and Poznan in Poland, which is scheduled for completion in 2015.

This EIB loan came as the Bank - the long-term lending arm of the European Union - said it had completed its 2011 funding programme of €75 billion. However, the EIB said it would "remain attentive" to pportunities to lend for the rest of the year.

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