DPP and Penta will establish a company for the purchase of land for the construction of metro line D

Prague - The Prague Public Transit Company (DPP) and Penta Investments plan to establish a joint venture due to land acquisitions for the D metro line. Penta will acquire 51 percent of it, allowing the company to pay market prices for the land necessary for construction. As a result, land acquisition and obtaining building permits could take up to four years, and the first trains could run on the route from Pankrác to Písnice in another three to four years. Prague, through DPP, has already invested 805 million crowns into the construction. The preliminary cost of the first section is estimated at 39.7 billion.

In the joint venture, DPP would invest 318.5 million crowns for its 49 percent share. Penta would contribute 331.5 million. The total budget of the joint venture is 6.5 billion, which represents 15 percent of the total costs for building the metro. The remaining funds would be obtained from banks. The capital of the venture would be 650 million.

The goal is to acquire the land needed for construction as quickly as possible, enabling DPP to obtain building permits. According to current legislation, it cannot offer the price that the landowners demand. At the same time, the joint venture is expected to benefit from the financial appreciation of land adjacent to the new stations, thus covering part of the construction costs. The joint venture will not construct tunnels, stations, or vestibules. Their construction will be managed by DPP.

From the amount that Prague and DPP have already invested in the D line construction, the largest item is the costs associated with the project and the issuance of the land use decision, which amount to 483 million. This amount also includes obtaining the EIA assessment, which evaluates the impact of the construction on the environment, and steps towards obtaining the building permit. DPP has not yet obtained this permit. The preparation for construction has consumed an additional 133 million crowns, and the company has paid around 50 million for studies and legal advice. The geological survey, which DPP plans to start in the third quarter of this year, is expected to cost about one billion crowns.

Some politicians have opposed the establishment of the venture in the past. Among them are the Pirates in the city council and there are objections from the Troika Coalition (Greens, STAN, KDU-ČSL), which governs Prague along with ANO and ČSSD. Deputy Mayor Petra Kolínská (SZ/Trojka) stated that Prague will not have sufficient control over the company. Lawyer Hana Marvanová, who is the leading candidate for STAN in the municipal elections, labeled the plan a potential new opencard. DPP has long rejected the criticism.

In the first phase, the section from Pankrác to Olbrachtova is to be created. Subsequently, the construction will extend to the planned stop at Nové Dvory and then to the final stop at Depo Písnice. In addition to the section from Pankrác to Písnice, the D metro line will also run from Pankrác to Náměstí Míru. No decision has yet been made regarding the construction of this part of the route. The new line will operate driverless trains. According to estimates, the metro D from Písnice to Náměstí Míru will cost about 50 billion crowns.