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Ferrovial-Strabag consortium wins Czech Republic's largest highway PPP

Ferrovial-Strabag consortium wins Czech Republic's largest highway PPP

Built World

28-year, €2.9 billion deal covers 52 km of the D35 corridor linking Bohemia and Moravia

Today: D35 PPP confirmed as Czech Republic's largest transport deal

Overview

Updated 1 hour ago

The Czech Republic has picked a consortium led by Spain's Ferrovial and Austria's Strabag to build and run the country's largest-ever highway public-private partnership. The 28-year, €2.9 billion deal covers 52 km of the D35 motorway corridor between Litomyšl and Mohelnice.

The D35 will link Bohemia with Moravia, diverting traffic from the congested D1 motorway and relieving towns along the existing I/35 road. The contract still needs approval from the Czech government and parliament, with financial close expected in early 2027.

Why it matters

The D35 will divert transit traffic from the congested D1 motorway and relieve towns along the I/35, reshaping east-west travel across the Czech Republic.

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Key Indicators

€2.9B
Contract value
Largest transport PPP in Czech history, per the Ministry of Transport.
28 years
Concession term
Runs from financial close; includes design, build, finance, operate, and maintain.
52 km
Total route
35.4 km of new motorway plus 17 km of existing D35 under operation and maintenance.
4 km
Dětřichov Tunnel
Longest of two twin-tube tunnels on the new section; the Maletín Tunnel runs 1.3 km.

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Organizations Involved

Timeline

July 2026 October 2026

3 events Latest: Today
  1. D35 PPP confirmed as Czech Republic's largest transport deal

    Today Announcement

    Deal publicly reported as the country's largest transport PPP, covering 52 km of the D35 corridor with two twin-tube tunnels.

  2. Czech Ministry selects ViAlliance35 as preferred bidder

    Decision

    Ministry of Transport picks the consortium for the 28-year, €2.9 billion D35 concession, pending government and parliament approval.

  3. ViAlliance35 submits tender for D35 PPP

    Procurement

    Consortium of Invesis, Strabag, Cintra, and Budimex submits its bid in the competitive dialogue for the D35 motorway.

Scenarios

1

D35 concession signed, construction begins by 2027

Likely Resolves by Q2 2027

Discussed by: Strabag, Budimex, Czech Ministry of Transport

The concession agreement needs consent from the Czech government and Chamber of Deputies. Once approved, financial close is expected in Q1 2027, with preparatory works starting immediately after signing. Strabag says construction is planned to start by the end of 2026.

2

Parliament delays or blocks the D35 concession

Possible Resolves by End of 2027

Discussed by: ceskainfrastruktura.cz

The concession agreement requires approval from the Chamber of Deputies. Political opposition or procedural delays could push signing into late 2027 or beyond, mirroring delays seen in other Czech infrastructure projects.

3

Financial close slips past Q1 2027

Possible Resolves by Q1 2027

Discussed by: ceskainfrastruktura.cz

Financing agreements are expected to close in the first quarter of 2027, making the concession effective. Market conditions or consortium internal issues could delay this, pushing the effective date and construction start later.

Historical Context

One moment from history that rhymes with this story — and how it unfolded.

Ongoing

D4 PPP (Czech Republic's earlier highway PPP)

The D4 was an earlier Czech highway public-private partnership using the same design-build-finance-operate-maintain model now applied to the D35. The D35 project explicitly builds on this precedent, with one key difference: preparatory works can begin immediately upon contract signing, whereas the D4 required a longer lead time.

Then

The D4 established the PPP framework for Czech highway construction, with the state paying availability fees only after sections open.

Now

It created the template the D35 now follows, testing whether the PPP approach can scale to the country's biggest transport project.

Why this matters now

The D35 is the second and much larger application of the D4 model, with the Ministry of Transport noting the streamlined preparatory works process as a direct improvement.

Sources

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