Czech Republic announces new road PPP

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Czech Republic announces new road PPP

Czech Transport Minister Dan Ťok has announced is set to build a section of the D4 motorway between Příbram and Písek in South Bohemia through a public-private partnership (PPP)

PPP projects have not succeeded in the Czech Republic in the past, but the current financial surplus and low interest rates could lead to success, according to Ťok.

Completion of the D4 through a PPP will serve as a pilot project, as the Czech Republic will not be entitled to tap EU funds after 2023 and will have to look other funds in the future.

Jan Troják, head of project financing at ČSOB, and Petr Svoboda, head of the Association for Road Construction, both support the idea of building the D4 as a PPP project, according to sources.

Costs for the 30 km section are estimated at CZK25 billion (US$1.03 billion). Construction should start in two years. 

Dan Ťok has recently met with the Minister of Territorial Development, Infrastructure and Transport of the Republic of Korea, Kang Ho-ins. Topics discussed were transport infrastructure, in the interest of Korean companies on PPP projects in the Czech Republic. The meeting was held within the working visit of the Minister Kang-Ho-ina to the Czech Republic. 

Kang Ho-ins said:

“The Korean side offered the Czech Republic and the other Member States V4 provide its capacities and transfer of practical experience in the field of construction of high-speed lines. At the same time they expressed interest in the project linking the city center with the airport Vaclav Havel and the motorway D4 using the PPP method. I assured the minister that both projects will be announced open tender on equal terms."

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