10th March 2014

Ministry of Transportation: highways constuction public procurement open

The Ministry of Transportation has announced public procurement projects that would allow concluding contracts for construction of new highways in the Czech Republic. The total length of highway stretches should be nearly 48kms, the expected expenditure on all sites should be 8.8 billion CZK. According to the Act on Public Procurement, all the contracts should be approved by the Government as the respective provisions are applied – the Government have to approve all the contracts over 300 million CZK. There are two positive effects of the projects. Firstly, there is a direct effect of traffic acceleration on those stretches (one of them is the highway stretch from Prague southward to České Budějovice region and further to Austria). Secondly, there is an incentive for construction companies that could even improve the performance even to a full economic recovery in construction branch. The projects are the biggest public competitions in last four years.
The Ministry of Transportation expects that the major criterion for winning the contract would be the price of the construction. Further, the Ministry also declares that the provided warranty would be also important (it reflects recent obstacles in North Moravia region with newly constructed highways). All the projects should be co-financed by the EU.
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Members of the American Chamber of Commerce in the Czech Republic