Delays on Slovakian projects

Work on several new highways being built in Slovakia as public-private partnerships (PPPs) will be delayed by six to 12 months. This means that the first sections of the Martin-Presov link will not open before 2011. The last section is expected to be completed in either late 2012 or early 2013.
July 9, 2012 Read time: 2 mins
Work on several new highways being built in Slovakia as public-private partnerships (PPPs) will be delayed by six to 12 months. This means that the first sections of the Martin-Presov link will not open before 2011. The last section is expected to be completed in either late 2012 or early 2013.

The delays are caused by problems in negotiations with banks. 979 Bouygues, the leader of a six-member consortium which will build the D1 highway has said that it is in talks with 19 banks, including EIB, which has promised to provide €1 billion, and EBRD. Investment costs will be €2.4 billion but when operating costs are included, they rise to €3.3 billion.

The 30-year concession is estimated to cost up to €7.6 billion. The D1 highway will now be completed in 2011 rather than 2010 as originally planned.

The R1 highway from Nitra to Banska Bystrica will also be delayed and will not open before 2011. Construction will cost €1.5 billion but the total costs will amount to €3.5 billion. The R1 is Slovakia's first PPP-funded highway project. A 51km stretch of the R1 highway that links Beladice and Tekovske Nemce is being built by French-Dutch consortium comprising 4084 VINCI Concessions and ABN Amro Highway. The 30-year concession project is expected to cost €1.5 billion and was originally planned to be completed by the end of 2010. However the contract was signed later than expected. The consortium will receive €3.47 billion in total, including interest, from Slovakia during the period of the contract.

Bratislava municipality (BSK) has revealed that it needs more funds to improve its roads. In 2009 BSK will receive €13.1 million for roadbuilding and repairs, although the region needs almost €150 million to repair all of its roads and bridges, some of which are in a very poor condition.

BSK currently operates 512 km of roads and 130 bridges and is struggling with the shortage of funds for repairs. The Bratislava area does not receive any financial contributions from EU funds however. One of BSK's priorities is to build the Pezinok by-pass, which would cost around €100 million.

For more information on companies in this article

Related Content

  • Go-ahead for controversial highway
    May 30, 2012
    APPROVAL HAS now been given for work to go ahead on a key section of Slovakia’s D1 highway. The work had been delayed as the European Commission (EC) was concerned over environmental issues facing sections of the route that passed through a nature reserve. The EC has now given its approval for construction of the highway between Martin and Presov on conditional terms. The EC says that the sections in zones belonging to the Natura 2000 network can be built once terms are agreed with the Slovak government o
    Read More
  • Slovakian project under spotlight
    July 3, 2012
    Environmental questions are facing the construction of the Martin-Presov highway in Slovakia. The European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD) are waiting to receive approval to fund construction of the highway in Slovakia from the European Commission (EC). However the EC is not giving its approval for the loans at present until the Slovak Government provides answers as to why the route goes through a national park. Although the Slovakian Transport Ministry is k
    Read More
  • Delays for Czech highways
    May 30, 2012
    THE NEW highway network currently being built in the Czech Republic will be completed in 2025, five years later than the original planned completion date of 2020. The country’s Transport Ministry has said that €19.55 billion will be needed to extend the total length of the network from the current 1,113km to 2,153km. However,it has pointed out that a new system of funding will be required or there will be a shortfall to pay for the plans by 2020.Various options are being considered at present with bond issu
    Read More
  • Slovakian regional roads need repairs worth over €700mn, say authorities
    November 8, 2013
    Regional authorities in Slovakia have been pointing out poor condition of the roads across the country and the absence of the €700 million plus they say is required for their repair. Eight self-governing regions manage around 14,000km of roads, of which some 4,000km are said to be in critical condition. Between 2009 and 2013 regions invested around €283 million into the maintenance and repairs of roads. However, officials of the Presov self-governing region estimate that a further €298 million is needed
    Read More

Highlighted Content