The Ministry signed a contract with an association that shall prepare a PPP project for D4

The Ministry signed a contract with an association that shall prepare a PPP project for D4
28/11/2017Press releases

The first PPP project in the Czech Republic is close to implementation. The Ministry of Transport signed a contract with White&Case, Česká spořitelna and Obermeyer Helika that will help the state with preparing the project and selecting the concessionaire. The objective is to complete the missing 32 kilometres of the D4 motorway between Příbram and Písek through cooperation between the private and the public sector. The private company would also be responsible for the operation and long-term maintenance of the new motorway.

The Ministry signed a contract with an association that shall prepare a PPP project for D4

 "We have a clear time schedule for how to proceed until the concessionaire has been chosen, step by step. At the beginning of next year, we will present the PPP project to all potential parties that may be interested. Then the qualification and competitive dialogue with the selected range of applicants will follow. A consultant who has experience with similar motorway projects is important for the state, so that the state gets the best possible deal with the private investor and sets everything in the right way," said the Minister of Transport Dan Ťok.
 
The actual construction of the missing D4 section through PPP could begin in two or three years. It will depend on whether it is going to be obstructed due to disputes with the antimonopoly office or complications in obtaining the building permit. The entire remaining D4 section already has valid planning permits. Next year a new Environmental Impact Assessment (EIA) statement will be arranged. Land purchases along the entire length of the remaining route continue as well.
 
The Ministry of Transport ended with the selection of the consultant for the PPP project in August. The objections proceedings lasted until the end of November and were successfully closed. Now the tender for the consultant is successfully finished and the contract signed. The selected bidder also played a major part in the preparation of the concessionaire contract for the PPP project of Bratislava by-pass which was concluded last year.
 
Contrary to the expected project price of CZK 79 million, the state will save significant amounts on the PP consultancy thanks to the public tender. The winning association will provide the requested service for CZK 26 million excluding VAT. "Contrary to our initial expectations, we managed to save over CZK 50 million," minister Ťok pointed out.
 
No PPP motorway project has ever made it to this phase in the Czech Republic. "Within the three to six years, European funds for the construction of motorways will be significantly reduced. Therefore, we need to prepare for other funding models such as PPP. In the future we would like to build in this way where we have a compact motorway section with a length of at least 30 km and get a valid planning permit. The D7 and/or D6 or even D35 are the candidates", Ťok said.



 
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