Czechia to launch tender for its first PPP rail project

PPP rail project in CzechiaSpráva železnic (SŽ), the European Bank for Reconstruction and Development (EBRD), and the Ministry of Transport, together with a consortium of consulting firms presented the key parameters of the first PPP rail project in Czechia.

The event took place in Prague and attracted more than 200 representatives of investors, construction companies and financing institutions, with another 80 joining online.

“The investor day was a clear message to domestic and foreign investors that the start of the tender process for concessionaires for this important project is near. The basic parameters of the project will be based on the successful implementation of the track load class D4 rail in the form of PPP, taking into account railway specifics. Investors can thus assume that they will receive a high-quality project prepared according to international standards,” the Minister of Transport, Martin Kupka, said.

The first PPP rail project in Czechia concerns the modernisation of the section from Prague’s Veleslavín station to Ruzyně, and from there to the Václav Havel Airport. This also includes the construction of the Dlouhá Mile multimodal terminal and the new Prague-Liboc stop.

“Our goal is that in 2030 it will be possible to reach Václav Havel Airport by train from the centre of Prague. In this way, we want to improve traffic service, reduce noise and CO2 emissions, and we are subordinating all steps to this, including the search for alternative sources of financing,” said Mojmír Nejezchleb, Deputy Director General of Správa železnic for Railway Modernisation.

The Ministry of Transport and the Správa železnic plan to announce a tender for concessionaires before Christmas this year. The tender procedure will begin with the qualification phase, where applicants will have to provide evidence of their experience with similar projects. Subsequently, the contracting authority evaluates the submitted qualifications and selects those advancing to the next round.

“By participating in consulting for the Správa železnic, we are aiming for a professionally set and transparent competition that will attract a wide portfolio of sufficiently qualified applicants who will demonstrate not only their ability to sustainably implement the project from a technical point of view, but also their ability to secure financing for it,” said Marcos Martínez, the Head of the PPP Advisory Unit at EBRD.

The successful implementation of the PPP pilot project should open the door for the use of this model in other railway projects, including high-speed lines Czechia plans to build.

“The entire project is unique for many reasons, for example, the involvement of several banks, including the European Investment Bank or the European Bank for Reconstruction and Development, is being negotiated. I am very proud that Deloitte experts will help bring this important undertaking to a successful implementation in the shortest possible time, but not at the expense of quality,” explained Miroslav Linhart, Deloitte Advisory’s leading partner to the project.

Správa železnic has selected Deloitte who will help to the selection of PPP concessionaire for the rail project. The company will work together with together with Česká spořitelna, the law firm Císař, Češka, Smutný and the engineering company AFRY.

Václav Havel Airport and the centre of Prague will be connected from Praha-Ruzyně station to Praha-Letiště Václava Havla line. The project is part of the modernisation of Prague – Kladno railway and the construction of its double track. Under the project, the line will be electrified and will be equipped with ETCS, while the level crossings will be removed to increase traffic safety.

The missing link of the connection is between the Veleslavín train station and Václav Havel Airport Prague.

In 2023, Správa železnic selected the consortium of Metrostav TBR, OHLA ŽS and Elektrizace železnic Praha to modernise the rail section between Praha-Bubny and Výstaviště, part of the 15 km Prague – Kladno rail project.

In February 2022, SŽ awarded an association of AFRY CZ and AF-Infrastructure AB a CZK 110 million (EUR 4.4 million) contract for the construction of 4 km double track line from Praha-Ruzyně to Praha-Letiště Václava Havla, including a new railway stop  Praha-Dlouhá Míle.

The entire modernisation of the line connection between Prague city centre and the international airport will reduce travel time to only 25 minutes and the journey to Kladno should take 30 minutes.


Share on:
Facebooktwitterlinkedinmail

 

RECOMMENDED EVENT: