The Czech D4 highway is the first significant infrastructure project prepared in the Czech Republic as PPP model. Project will be designed, built, operated and financed by the concessionaire selected in a procedure with competitive dialogue.
Link: https://smlouvy.gov.cz/smlouva/soubor/5472216/smlouva_PPP.pdf
ABOUT THE PROJECT
The Ministry of Transport of the Czech Republic has begun to prepare a tender for a concession for the construction and operation of the D4 Highway using a PPP model. The project consists of the construction of approx. 32 km of new highway – specified as the Greenfield part (DBFOM model), and the operation and maintenance of approx. 16 km of highway specified as the Brownfield part (O&M only). The scope of the project remains similar as described in the publicly available Feasibility and Viability Study of R4 Project Implementation Using PPP as Compared to Traditional Public Tenders, which was drawn up in 2015.
Greenfield Part (DBFOM)
The concessionaire will be responsible for the design, construction, finance, operation and maintenance of the 32 km four-lanes highway D4 connecting Háje with Mirotice.
Brownfield part (O&M)
Additionally, the operation and maintenance of the adjacent sections of the D4 highway with a total length of 16 km are contemplated.
| CAPEX | About EUR 270 million (approx. CZK 7 billion) |
| Project Period | Estimate 5 years of construction, followed by 25 years of operation |
| Payment for services | Availability payments (deductions for unavailability and insufficient quality) are to be paid by the Contracting Authority to the concessionaire based on actual performance from the beginning of operation. Availability payments will reflect the principle of proportionality. |