The deputies agreed on completing and maintaining D4 motorway by way of a PPP project

The deputies agreed on completing and maintaining D4 motorway by way of a PPP project
9/2/2021Press releases

The Chamber of Deputies approved the conclusion of a concessionary agreement to complete the remaining 32 kilometres and to operate the D4 motorway between Příbram and Písek. The deputies agreed with financial liabilities of the state stemming from the proposal of a concessionary agreement to design, construct, finance, operate and maintain the D4 motorway in the section Háje – Mirotice and to operate and to maintain the existing adjacent sections Skalka – Háje and Mirotice – Krašovice. The financial implementation is in a nominal value of CZK 18,761,377,912 and EUR 446,191,297.

The deputies agreed on completing and maintaining D4 motorway by way of a PPP project
“The construction should begin in March and the new 32 kilometres of the motorway will be finished in 2024. The selected concessionaire will operate and maintain the motorway in a perfect shape for another 25 years, together with already constructed 16 kilometres of D4 motorway and I/20 road”, said minister of transport Karel Havlíček.

The Czech Republic will start to repay the motorway after its completion and will take over the maintenance and operation after 25 years in ‘as-good-as-new’ state. The state is ordering not only the construction but also the maintenance service oppose to a traditional government procurement model. Furthermore, it also transfers the risks of construction and long-term operation and renovation to an external (private) partner, who is also responsible for the preparation phase and improvement of driving on the existing 16 km of the motorway. The two-way rest area Krsice, the centre of Správa a údržba dálnic (national motorway manager) in Lety u Písku, as well as a more advanced motorway technology compared to the projects of Road and Motorway Directorate, are also a part of the PPP project.

We need to compare the price, which the state will pay for a takeover of all these orders from the concessionaire, with traditional costs for state construction and 25 years of maintenance. Besides, if the quality of the motorway deteriorates, the state will be entitled to fine the operator by monthly instalment deductions, which is not possible on traditional motorways. The main advantage of using a PPP project is that the entire remainder of the D4 motorway will be completed at once without long-standing provisional measures, which in the end leads to a less comfortable ride.

“In the Czech Republic, we now have record SFDI (the State Fund for Transport Infrastructure) budgets, but we must be prepared for a potential decrease in contributions from Europeans funds in the future, especially concerning the constructions outside the Trans-European Network, such as bypasses on 1st class roads or regional routes. We will also have to increase co-investments when receiving resources from Europe”, said Mr Havlíček to clarify the reasons behind the Chamber of Deputies’ decision.

PPP projects represent an option to ensure smooth continuation and financing of construction. Successful implementation of the PPP project on the D4 motorway means a milestone to further use the PPP model for construction and operation of transport infrastructure.

The Czech construction company Eurovia will be responsible for the construction and design phase of the project.

You can find more information here.

 
Download:
Back to article list