BUSINESS IN SHORT

Bratislava bypass as PPP

THE MUCH needed bypass of Bratislava will be built as a public-private partnership (PPP) project. The government green lighted this variant of its construction on January 21. The opposition, which also sees building the bypass as necessary, criticises this variant as too expensive and calls for usage of the so-called Juncker’s fund or the Slovak Investment Holding.

THE MUCH needed bypass of Bratislava will be built as a public-private partnership (PPP) project. The government green lighted this variant of its construction on January 21. The opposition, which also sees building the bypass as necessary, criticises this variant as too expensive and calls for usage of the so-called Juncker’s fund or the Slovak Investment Holding.

The plan is to build the six and four-lane bypass of Bratislava, known also as a zero bypass, to detour transit transport around the centre of Bratislava. If not built, it is estimated that transport in the Slovak capital would collapse by 2020.

Construction works should start in 2016, while the bypass consisting of roads which are parts of the D4 highway and the R7 dual carriageway should be complete in 2020.

According to the cabinet, the Transport Ministry should start public procurement of the concessionaire by the end of January. The task of the concessionaire would be to design, build and operate the 59-km bypass, the Sme daily wrote.

The state should pay the concessionaire €4 billion-€4.5 billion in total during the 30-year concession, i.e. €135 million-€151 million annually. The Construction Ministry hopes that the procurement would yield a lower sum. The state expertise estimates construction costs at €1.325 billion.

The Construction Ministry sees the PPP project as more advantageous compared to classical construction, as works financed from the EU and the state could start only in 2023 at the earliest.

The opposition does not like the method of financing.

“We consider the PPP model to be disadvantageous,” said Pavol Zajac from the Christian-Democratic Movement (KDH) as cited by Sme. He perceives it as a mega deal for a private concessionaire.

Radoslav Procházka, head of the non-parliamentary Sieť party calls the project a tunnel 30 years long.

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