PRAK PRAGUE - KLADNO RAIL PPP

The project consists of modernisation of the railway line between Praha-Veleslavin and Praha-Ruzyne, construction of new railway line between Praha-Ruzyne and Václav Havel Airport Prague railway station (including construction of the station) as well as construction of the railway rounding link from the airport to the main railway line Prague-Kladno. It is part of a larger project aimed at connecting the city centre of Prague with the Vaclav Havel Airport Prague and Kladno. The project is to be procured through an availability-based PPP model, including the Design, Build, Financing and Maintenance of the abovementioned railway sections.

The Project increases competitiveness of rail and promotes shift of traffic from road to rail, enhancing sustainable transport in line with EU objectives and reducing negative transport externalities, thus addressing important market failures. These externalities include pollution reduction from the road diesel/petrol engines and the related noise and CO2 emissions. Furthermore, increased modal share of rail as the safest mode of land transport will lead to reduction of fatalities and serious accidents and the associated human suffering. The Project supports the deployment of the European Rail Traffic Management System, which creates network-wide benefits that are higher than those experienced by individual operators providing rail services on the network. The line is partly (12%) located in and leads to Central Bohemia, which is a transition region, improving its accessibility and contribution to its economic growth. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate change mitigation. The Project is therefore eligible under Article 309 points (a) "less developed regions" and (c) "common interest".

The project falls under Annex I of the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU, requiring a full EIA procedure. The compliance of the project with the requirements of the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU and the development consents will be reviewed during appraisal. The project's potential impacts on protected areas and species, in accordance with the Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC) will also be appraised. The project is expected to have a positive environmental impact by helping the railways to maintain modal share. Furthermore, the project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate change mitigation.

The project will be implemented through a PPP contract with availability payment mechanisms. The Bank will require the promoter to ensure that the PPP contract will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required. The future concessionaire is likely to be a private company not being subject to EU rules on public procurement. However, if at project appraisal, the EIB were to conclude that the concessionaire and/or the entities procuring the project contracts are subject to the EU public procurement legislation then the Bank will require that contracts for implementation of the project be tendered in accordance with the applicable EU procurement legislation (Directive 2014/23/EU / 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC) as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.