The agreement was signed in Dresden on June 23 by Saxony's transport minister Mr Martin Dulig and DB's CEO Dr Rüdiger Grube.
Saxony has requested the federal German government to classify the Dresden - Görlitz line as a long-distance railway under the German federal transport plan. If this approved, an additional €7m will be available for the second phase of planning.
The objective is to improve the rather poor international rail link between Dresden and Wroclaw, Poland. Electrification will avoid the need to change locomotives at the border.