The Czech Republic Transport Ministry is undertaking business case studies into two potential expressway PPPs.
Transport Minister Dan Tok said the government is allowing for obtaining the Expressway R4 and Expressway R7 projects as PPPs.
The first project to be tendered is the R4, a partially built 84km expressway linking Prague, the south-west Bohemia region and Bavaria with 32km of expressway remaining to be built and 4.8km currently under construction.
The second project is the R7, a partially built 85.5km expressway connecting Prague, the north-west Bohemia region and Saxony with 39km remaining to be built. Both projects are likely to be accomplished in 2022.
The government is thinking of using either the national budget or a PPP model, plus limited sources from the European regional development fund (for the R4 only).
An Outline Business Case with Public Sector Comparator (OBC) for the R4 has already been tendered, while the R7 OBC is planned to be tendered.
The PPP model will look after the design, build, finance, operate and maintainance with a 25-30 year term. Some modifications based on traffic flows will be discussed during market soundings.
Tok said the benefit of the PPP model is the rapidity of construction and lifecycle management. He said the government needs to gain experience with this type of project to be ready for the period after 2023, when EU money will be much more limited.