The state cannot manage without PPP projects in transportation; it simply does not have enough funds.

Czechia's investment ambitions in the field of transportation exceed the capacity of the state budget. Therefore, utilizing partnerships with the private sector is a necessity for the state, according to Jan Sůra, a partner at the law firm Portos. He believes that the amount of money allocated for transport projects in the State Transport Infrastructure Fund will need to at least double in the coming years. Otherwise, Czechia won't be able to realize its ambitious transport plans. Sůra said this at the "Conference of Ekonomický deník and Česká justice: Transport Financing."

Transport Minister Martin Kupka (ODS) referred to so-called PPP projects as a "necessary ingredient" of Czech transportation. This method of development is now also drawing interest from regional and municipal governments.

"While it’s true that the State Transport Infrastructure Fund is currently receiving a record amount of funding, the reality is that if we want to invest the planned five trillion crowns into infrastructure over the next 25 years, we’ll need at least twice that amount — and even more in the coming years," warned Jan Sůra. This year, the Fund has 160 billion CZK available, of which 110 billion is specifically allocated for infrastructure investments.

Czechia has fallen behind in transportation. It missed out on support from Europe.

State officials agree with Sůra’s assessment. According to Radek Mátl, head of the Directorate of Roads and Motorways, Czechia has no other viable source of funding. "The era when the European Union was financing the construction of highways and roads across Europe ends next year. The Republic of Poland made good use of it, but we missed that opportunity," he explained. He added that the Czech state cannot even afford to complete its highway network on its own — let alone fund other necessary infrastructure investments.

Full article on the website Ekonomický deník