The transformation of the Road and Motorway Directorate into a more flexible organization has begun

The transformation of the Road and Motorway Directorate into a more flexible organization has begun
26/7/2019Press releases

These days, the Ministry of Transport has made the first steps towards the transformation of the Road and Motorway Directorate from a state-funded organization into a company operating in market environment. Within at least three years the change should lead to the creation of a business entity which will be better suited to the environment in which it operates and will respond effectively to the need for speeding up the construction of transport infrastructure.

The transformation of the Road and Motorway Directorate into a more flexible organization has begun
“I want this change, supported by the Road and Motorway Directorate, to take place within a reasonable time frame and with as few legislative changes as possible. The necessary continuity must also be maintained, not only in relation to construction, but also to existing employees. The aim is to have an efficient highway construction and maintenance company that is competitive on the labour market,” says Transport Minister Vladimír Kremlík.
 
The forthcoming transformation should allow for a better adaptability of the “new” company to the changed situation in the area of available resources (national and European), especially as regards the use of financing from private sources and other private and public financial instruments, such as the upcoming National Development Fund. In the area of personnel, the change should give more space to managerial control of the organization and allow even more variability for remuneration of employees and recruitment of other experts. The Road and Motorway Directorate must be an attractive employer who will be a competitive choice over the construction and design companies it is supposed to supervise.
 
“Now the Ministry of Transport has to undergo a process whereby we assess the various possible options of the legal form of the newly formed entity and prepare a material about which we will inform the members of the government in the autumn,” Minister Kremlík describes the current stage of preparations.

The main reasons for changing the Road and Motorway Directorate are:
 
to ensure the interconnection of revenues and expenditures related to the management of a selected part of the transport infrastructure and to enable, through external sources, to optimize cash flow according to construction needs without a direct link to the state budget (other private sources, loans, etc.);

to ensure the possibility of contractual salaries for experts;

to ensure a standardized view of the company's financial performance (business corporation model with standardized reporting).
 
The aim of the initiated process is to find optimal organizational structures of the system of planning, financing, maintenance, renewal and construction of transport infrastructure which will make it possible to use the recommended and sustainable mix of financial resources economically, efficiently and effectively and to adapt their amount to the requirements for building new infrastructure. The transformed organization must be process-driven and project-oriented.


 
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