The Ministry of Transport called for tenders for the completion and operation of the D4 motorway in the form of a PPP project

The Ministry of Transport invited three participants of the competitive dialogue to submit their bids for the project of construction and operation of the 32-kilometer D4 motorway in the PPP régime.

This is a follow-up step to the four rounds of competitive dialogue that took place between April 2019 and January 2020. The completion of the motorway is expected to start at the end of year 2020, beginning of 2021, and is expected to be operational by the end of 2023.

“This is basically an operational leasing motorway where the state is the owner of the motorway, where we will only start paying when the finished motorway starts operations and if appropriate services will be provided. As with the completion of the Písek D4, we are considering using PPP projects for the completion of the Central Bohemian D3 or the D35 motorway as an alternative northern route connecting Bohemia with Moravia and Silesia” says Transport Minister Karel Havlíček.

The Ministry of Transport expects to receive the bids by the end of May 2020 and subsequently, in addition to the actual evaluation, approval by the Government and the Chamber of Deputies will also take place. Conclusion of the concession contract is expected in the autumn of 2020 so that the preparatory work can be started at the end of year 2020, beginning of 2021.

Companies asked for bids represent the world leaders in the construction and operation of motorways and other infrastructure projects. Specifically, these are the consortia DIVIa (Vinci, Meridiam and Eurovia), Via4 - Southern Connection (Porr, OHL, EGIS and Macquarie), and HO-ST - South Bohemia Link (Hochtief and Strabag).

"These participants met the qualifications in the first round, which could be attended by an unlimited number of potential suppliers, and subsequently participated in all negotiations within the competitive dialogue, originally total seven candidates entered the qualification round," adds project coordinator Martin Janeček from the Ministry of Transport.

The D4 PPP project is not only about completing the missing D4 motorway along the entire length of the missing 32 km (including related structures along the route), but also its financing from private investor sources and proper operation and maintenance of the motorway for the duration of the concession contract is necessary to be able to receive payments from the state. Consequently, the concessionaire will bear the risk of repayment of his own invested funds for 28 years.

From the perspective of users, the motorway will be charged in the same way as other roads in the Czech Republic. The income from these fees will be the income of the SFTI and will not be in any way connected with the payment to the concessionaire, which is paid solely on the basis of the principle of adherence to the quality of services.


The state will start paying for the motorway only after its opening


Payments by the concessionaire shall be determined by the State according to the quality of the operation of the D4 motorway and the fulfillment of other obligations. “The concessionaire will therefore be financially sanctioned, for example, for any closures that arise as a result of non-compliance with his obligations, and sanctions will also be increased in the event of closures at peak hours,” explains Janeček.

The bid price will therefore include not only the costs of the construction of the motorway and related structures and technologies, but also the costs of proper operation or the risk of such deductions. The state will be the owner of the motorway for the entire duration of the concession contract, but it will apply after the finished motorway is opened and only in the case of faultless services.

As an example, according to Janeček, there are requirements for compliance with transversal and longitudinal inequality, where in the case of non-compliance in any half-kilometer section, the whole defined half-kilometer section will be considered unavailable and no payment will be paid for it.

"In this context, it can be assumed that the motorway surface in the southern part of the motorway will be completely restored and safety bays will be added to enable the safe shutdown of broken down vehicles," explains the project coordinator. Responsibility for the implementation of the project is mainly taken by the concessionaire, but it is still the state that is the actual owner of the entire motorway from the moment of its construction to the termination of the concession agreement.


The concessionaire will bear the risk of completion and quality of the motorway


From the point of view of meaningful maintenance of roads, the state entrusts the concessionaires with 16 km of immediately adjacent four-lane roads for operation and maintenance of unfinished 32 km. The concessionaire will therefore be responsible for the proper operation of a total of 48 km of the four-lane D4 and I / 20 roads from Skalka u Příbrami to Krašovice on the I / 20 road in front of Písek.

The concessionaire will maintain these 48 kilometers from the motorway management and maintenance center, which he will first design and build, including the new motorway police department. Differently from other motorway projects in the Czech Republic, concessionaires will be able to make changes leading to optimal lifetime costs for the operation and maintenance of the motorway (i.e. the effort to minimize repairs and related closures).

In addition to the existing projects, the project will also be equipped with an advanced system of motorway technology that will allow safe operation and traffic management and allow the state to monitor the concessionaire's obligations.