Country profile Czech Republic
Adam Zdeněkeconomic advisorgsm: +420 739 062 703email: firstname.lastname@example.org
Procurement of Czech infrastructure recently
Czech public services and infrastructure needs a lot of investments. It suffered a lot during thecommunist reign. Still the level of services is very low and there is a lot of space for improvement.The most used instrument to finance public infrastructure is combination of budget or debt moneywith EU´s Structural funds
. However sometimes it is risky, because, as it appeared in Czech Republicthe misused money needs to be handed back to Brussels, so there is a double payment for theinfrastructure in case of random or intentional mistake. There is allocated approx 17 billon Euro forperiod from 2007 till 2013 for infrastructure spending, most of it for transport infrastructure Butthese funds are not to going be available forever, in the nest programming period (2012-2020) wecan expect less funds and there are some serious issues with this type of funding.Necessary funds for the infrastructure needs of the Czech can be counted in the order of hundreds of billions of crowns. Highway, public transport, water supply, affordable housing - finance is missingeverywhere. Several attempts to involve the private, ie bank finance in PPP projects were under wayand, unfortunately, not always, and especially the most visible projects successfully.
Czech is relatively healthy economy with strong need for infrastructure investments in all sectors.Due to rigid attitude to procurement of public infrastructure it is still plenty of space for use of PPPprinciples. Ministry of Transport promised to implement the first PPP project - DBFO highway D3.The main issues are lack of professional capacity within the public sectors and natural anticipation topaying the advisors (which is always a big issue for media). The other is missing project´s pipeline.There is also a pension system reform going on and there is a possibility to use pension funds as areasonable source of finance for projects. The current minister of finance is not a big friend of PPPs,but the fact is, that the country needs a solution for its underinvested assets.On communal level we can see a rose in demand for PPPs usually driven by EU´s environmentaldemands. The most attractive sectors would be transportation, waste management and affordablehousing.
About the author
PPP and economic advisorgsm:
+420 739 062 703;
email@example.comPraha / Prague, Czech Republic
Ministry of finance -http://www.mfcr.cz/cps/rde/xchg/mfcr/xsl/en_ppp_czech_republic.html PPP Unithttp://www.pppcentrum.cz/index.php?lang=en&cmd=page&id=1113