The first PPP project of the Czech railway attracts investors' attention

The first PPP project of the Czech railway attracts investors' attention
14/10/2024Press releases

Správa železnic and the European Bank for Reconstruction and Development (EBRD), with the participation of the Minister of Transport and a consortium of consulting firms, presented the key parameters of the first PPP project on the Czech railway. The presentation in Prague's Fanta Building attracted more than 200 representatives of investors, contractors and financing institutions, with another 80 joining online.
 

 The first PPP project of the Czech railway attracts investors' attention
"The Investor Day was a clear message to domestic and foreign investors that the start of the tender for the concessionaire for this important project is shorty before us. The basic parameters of the project will be based on the successful implementation of the D4 motorway in the form of PPP, however taking into account the railway specifics. Investors can therefore expect to receive a well-prepared design according to international standards," said transport minister Martin Kupka.
The first PPP railway project involves the modernisation of the section from Praha-Veleslavín to Václav Havel Airport, including the construction of a multimodal terminal Dlouhá Míle and a new stop Praha-Liboc.

"Our goal is that in 2030 it will be possible to travel by train from the centre of Prague to Václav Havel Airport. We want to improve the transport service, reduce noise and CO2 emissions and we are subordinating all our actions to this, including our search for alternative sources of financing," said Mojmír Nejezchleb, Deputy Director General for Railway Modernisation with Správa železnic.

The Ministry of Transport and Správa železnic plan to announce the tender for the concessionaires before Christmas this year still. The procurement process will start with a qualification phase where bidders will have to demonstrate in particular their experience with similar projects. The contracting authority will then evaluate the qualification submittals and select candidates to proceed to the next round.

"Our aim of our participation in consultancy for Správa železnic is a competition that is professionally prepared and transparent, attracting a wide portfolio of sufficiently qualified bidders who will demonstrate not only their ability to implement the project in a sustainable manner from a technical point of view, but also their ability to secure financing for it," said Marcos Martinez, Director of the PPP Advisory Services Department with EBRD.

The successful implementation of the PPP pilot project should open the door for PPP in other railway projects as well, including high-speed lines.

"The rail line to Václav Havel Airport represents the first-ever railway project in the Czech Republic based on a public-private partnership. The construction of the missing railway connection between the Veleslavín railway station and the main Prague airport will have a positive impact on the citizens of Prague, the economy of the capital city and the whole country. It will help tourism, enable significant capacity development of Ruzyně Airport and have a positive impact on the environment and decarbonisation. The whole project is unique for many reasons, for example, for the involvement of several banks, including the European Investment Bank and the European Bank for Reconstruction and Development. I am very proud that Deloitte experts are here with us and that we will help to bring this important project to its successful implementation in the shortest possible time, but not at the expense of quality," said Miroslav Linhart, managing partner of Deloitte Advisory.

When processed, the recording of the Investor Day will be publicly available on the YouTube channel of Správa železnic.
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