Negotiations for the financing of the construction of metro line D will take approximately a year

Prague – Negotiations regarding the financing of the construction of metro line D will last for about a year. The transport company (DPP) will negotiate with the European Investment Bank (EIB) as well as with commercial banks. In response to a query from ČTK, DPP's CEO Petr Witowski stated today. According to him, it is important for the company that the city council approves the construction on Thursday, as the DPP's decision will allow them to discuss specific financing conditions. The Prague leadership has stated in recent months that it will also negotiate funding with the state.

Prague councillors have already agreed to start construction of the first section of the metro from Pankrác to Nové Dvory. Costs are expected to be approximately 52.09 billion CZK when accounting for inflation. Subsequently, the metro should lead to Písnice, and in the final phase from Pankrác to Náměstí Míru.

The company has already had initial discussions with banks, but has not yet addressed specific financing structures with them. "From these discussions, we know that the application and approval process will take at least one year. A prerequisite for negotiations with banks is the consent of the Prague city council. This means a clear declaration that Prague wants metro D," Witowski wrote in a text message to ČTK.

At today’s meeting of the city council's transport committee, Deputy Mayor Adam Scheinherr (Praha Sobě) stated that the city, by its decision, will guarantee the financing of the metro construction, but will not pay for it itself. "We are not saying that we will cover the construction 100 percent in the first phase, even though we are capable of it. After negotiations with the EIB, more will be known," said Scheinherr.

A specific proposal for the financial coverage of the construction should be presented by Scheinherr, along with Deputy Mayor for Finance Pavel Vyhnánek (Praha Sobě), to the Prague city council by the end of this year. The city's guarantee of coverage for the metro financing is particularly important for the DPP. Without it, they cannot enter negotiations with banks. They themselves cannot afford to cover such an investment from their budget.

The opposition criticizes the cost of the construction. For example, according to the opposition ANO, the anticipated price has disproportionately increased in recent years. They cited the construction of a metro in Sofia, Bulgaria, which cost significantly less for a similar extent. Witowski and Scheinherr rejected the objections. According to the Deputy Mayor, both inflation and the rising costs of construction work influence the price. Witowski then stated that a reduction in costs would mean that Prague would compromise on the established standards. Moreover, according to him, the project in Sofia is more like a tram that runs in tunnels than a metro. "We are not moving outside the chessboard, to put it in the terms of Cimrman," said Witowski.

The DPP completed geological surveys last summer at two of the four sites. At the completed survey sites, they subsequently conducted further exploratory drilling, which will be part of the future metro spaces. The survey at the remaining two sites will last until September of this year. Most of the tunnels from the geological survey will be part of the future metro D.

In the first phase, the metro will be built between Pankrác and Nové Dvory and will then continue to Depo Písnice. In the future, a section from Pankrác to Náměstí Míru is to be constructed. It has not yet been decided where the metro might go from Náměstí Míru. One of the options was Náměstí Republiky, while another would direct the route to Žižkov and further to Vysočany. The total expected cost, according to this year's update, is 97.79 billion CZK, with the DPP as the investor.