The tender for the construction of 32 km of the D4 motorway through PPP starts

The tender for the construction of 32 km of the D4 motorway through PPP starts
14/5/2018Press releases

The ministry announced the competition for the construction of the missing 32 kilometres of the D4 motorway between Příbram and Písek through cooperation between the private and the public sector, the so-called PPP project. A private company will then have to operate and maintain the new motorway for 25 years. The construction of the D4 extension will not start sooner than in two years.

The tender for the construction of 32 km of the D4 motorway through PPP starts

"Within 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 in locations where we have a compact motorway section with a length of at least 30 km and get a valid planning permit. The D35 or D6 are among the candidates,“ says the transport minister Dan Ťok.
Applicants can file their applications until July 2, 2018. Then they will be evaluated and short-listed, i.e. reduced to four applicants based on the number of similar PPP projects they have completed. Four joint ventures with most PPP reference projects will be invited to competition dialogues and further negotiations with the contracting authority.

The Ministry of Transport assumes that about CZK 25 billion will be paid to the winner for the construction and operation of the motorway. Based on world-wide practices, the tender value was set as the total of nominal availability payments for the entire contract term. The final annual availability payment will be defined in a public tender. "The winning bidder will not only construct the motorway, but also monitor the work quality and ensure motorway operation and maintenance, because it must hand over the motorway to the state in a top shape," minister Ťok adds.
The government approved the minister's plan to build the remaining part of the D4 through PPP in January 2016 In the next year, 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. Contrary to the expected project price of CZK 79 million, the state saved more than CZK 50 million thanks to the public tender for PPP consultancy services. The whole remaining section of the D4 already has legally effective planning permits and a new EIA statement is pending. Land purchases along the entire length of the remaining route continue as well.

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