STRABAG Consortium Selected for €2.9 Billion Czech D35 Motorway PPP
A consortium comprising STRABAG, Cintra, Budimex and Invesis has been selected as preferred bidder for the Czech Republic’s largest transport public-private partnership, covering approximately 52 kilometres of the D35 motorway corridor between Litomyšl and Mohelnice. The project combines construction of a missing motorway link with the long-term operation and maintenance of an adjoining section, under a concession expected to run for 28 years.
The ViAlliance35 consortium was selected by the Czech Ministry of Transport following a competitive procurement process in which it submitted its offer in July 2026. Contract signing and the start of construction are planned for the end of the year, although the agreement remains subject to further statutory approvals and financial close.
The project carries an indicative value of approximately €2.9 billion, representing the present value of availability payments over the concession period rather than the construction cost alone. The arrangement combines private financing and construction with responsibility for maintaining the motorway to agreed performance standards.
Briefing
- ViAlliance35, comprising STRABAG, Cintra, Budimex and Invesis, has been selected as preferred bidder for the D35 motorway PPP.
- The concession covers approximately 52 km, including 35.4 km of new motorway and around 17 km being delivered separately.
- The project is valued at approximately €2.9 billion in present-value availability payments over a 28-year concession.
- Two twin-tube tunnels, approximately 4 km and 1.3 km long, form major elements of the construction programme.
- Contract signing and construction commencement are targeted for late 2026, subject to the remaining approvals and financing arrangements.
Completing a Strategic East-West Motorway
The D35 is intended to provide an alternative east-west motorway connection between Bohemia and Moravia, reducing dependence on the D1 and improving road access through the country’s central and eastern regions. Its development has particular importance for freight transport, with the existing I/35 carrying through traffic across a succession of towns and municipalities.
The new PPP section will close a 35.4-kilometre gap between Opatovec, Staré Město and Mohelnice, providing a dual two-lane motorway along a corridor currently dependent on less suitable routes for long-distance traffic. The concession will also incorporate approximately 17 kilometres of D35 between the Litomyšl and Opatovec junctions, which is being constructed separately by the Czech Road and Motorway Directorate.
That section will transfer to the concessionaire when the new motorway sections enter operation, bringing both elements of the route under a single long-term maintenance and management arrangement.
Once the relevant sections of the wider D35 corridor are completed, the motorway is expected to absorb some of the traffic currently using the heavily travelled D1. The extent of that redistribution will depend on completion of other D35 sections and the relative journey times offered by the two corridors.
Tunnel Construction and Civil Engineering
The two principal tunnels account for a substantial part of the project’s engineering complexity. The Dětřichov Tunnel will extend approximately four kilometres, while the Maletín Tunnel will measure around 1.3 kilometres. Both are planned as twin-tube structures, with STRABAG responsible for their construction.
The tunnels will require coordinated excavation, structural works and installation of drainage, ventilation, fire protection and operational safety systems. Their precise construction methods and geological challenges have not been detailed in the project announcement, although the length of the Dětřichov Tunnel makes it a particularly substantial component of the programme.
Beyond the tunnels, the scheme includes two motorway rest areas and a connecting route to the existing I/35. The construction works are to be delivered by a consortium of two Czech subsidiaries of STRABAG, acting as lead contractor, and Budimex.
The programme will bring together earthworks, bridges and other structures, pavement construction, tunnel systems and motorway commissioning. Construction sequencing will be particularly important where underground works, surface infrastructure and connecting roads must be completed within the same delivery timetable.
Financing and the Availability Payment Model
The D35 project is being procured through an availability-based PPP arrangement. Under this financing model, the private concessionaire arranges project finance and delivers the infrastructure, while the public authority makes payments linked to the motorway’s availability and contractual performance requirements.
Unlike a conventional toll concession, the commercial structure does not necessarily depend on the private operator collecting revenue directly from motorists. Traffic demand risk can therefore remain largely with the public sector, although the precise allocation of risks will depend on the final concession agreement.
The Czech Ministry of Transport has reported a net present value of CZK 71.32 billion for the availability payments, equivalent to approximately €2.9 billion using the exchange rate specified in STRABAG’s announcement. This represents the discounted value of payments over the concession period and should not be confused with the capital expenditure budget or the construction contract value.
The concession is expected to last 28 years from financial close, encompassing construction and subsequent operation and maintenance. The allocation of the concession period between those phases has not yet been confirmed in the announcement.
The participation of Cintra and Invesis brings infrastructure investment and concession experience to the consortium, alongside the construction capabilities of STRABAG and Budimex. The arrangement places long-term responsibility for the condition and availability of the motorway with the concessionaire, subject to the contractual allocation of risks and obligations.
Those responsibilities will extend beyond routine pavement and roadside maintenance. The Dětřichov and Maletín tunnels will require regular inspection, servicing and eventual replacement of mechanical, electrical and safety equipment throughout the operational period.
Ventilation, lighting, emergency systems, drainage and traffic management installations all have maintenance requirements that extend well beyond the initial construction programme. Under an availability-based concession, the condition and operational performance of those assets can directly affect the payments received by the operator, depending on the final contractual provisions.
Procurement and Delivery Programme
Preferred bidder status is an important procurement milestone, but it does not constitute a completed concession agreement. The project must still pass through the remaining statutory procedures, including approval by the Czech government and Chamber of Deputies, before the contract can be finalised.
The consortium must also complete the financing arrangements required to reach financial close. STRABAG expects the agreement to be signed and construction to begin towards the end of 2026, leaving a relatively short interval between bidder selection and the intended mobilisation of a major motorway programme.
Stefan Kratochwill, CEO of STRABAG SE, welcomed the selection: “Powerful public-private partnerships are an important key to implementing urgently needed infrastructure faster and more efficiently. The selection of our consortium as the preferred bidder for the D35 is a great vote of confidence. Together with our partners and with our many years of experience in complex traffic route and tunnel construction projects, we are convinced that we will be able to successfully implement this project.”
The consortium’s selection follows a competitive procurement process, although details of the financing arrangements and contractual performance thresholds have not yet been disclosed.
The Czech Republic already has experience with motorway PPP delivery through the D4 project, which entered operation in December 2024. The D35 concession will be larger in both the length of motorway covered and the reported present value of payments, while incorporating a substantial programme of twin-tube tunnel construction.
Strengthening the Czech Road Network
The D35 has long formed part of the Czech Republic’s motorway development programme, intended to improve connectivity between its western and eastern regions and provide additional capacity across the national network.
Completion of the Opatovec to Mohelnice section will remove a substantial missing link, although the full transport benefits will depend on progress elsewhere along the corridor. For municipalities currently exposed to through traffic on the I/35, the eventual diversion of heavy vehicles could reduce pressure on local roads and improve conditions for residents.
The immediate priority is completing the procurement and financing process so construction can begin. With more than five kilometres of twin-tube tunnels, a major new motorway section and a 28-year concession to establish, the D35 programme will be one of the Czech Republic’s most substantial transport infrastructure commitments.
Key Industry Questions
- Who has been selected for the D35 motorway PPP? The ViAlliance35 consortium, comprising STRABAG, Cintra, Budimex and Invesis, has been selected by the Czech Ministry of Transport as preferred bidder.
- How much motorway will be constructed? The project involves 35.4 kilometres of new motorway, together with the future operation and maintenance of approximately 17 kilometres of D35 being constructed separately.
- What is the value of the concession? Approximately €2.9 billion, expressed as the present value of projected availability payments over the concession period. This is not the construction-only budget.
- How long will the concession last? The concession is expected to run for 28 years from financial close, including construction and operational responsibilities.
- What major tunnels are included? The Dětřichov Tunnel, approximately four kilometres long, and the Maletín Tunnel, approximately 1.3 kilometres long. Both are planned as twin-tube structures.
- How will the motorway operator be paid? Through public-sector availability payments linked to the motorway’s availability and contractual performance requirements, rather than directly to traffic volumes.
- What approvals are still required? The concession must complete the remaining statutory procurement procedures and receive approval from the Czech government and Chamber of Deputies. Contract finalisation and financial close must also be completed.
- When is construction expected to begin? Contract signing and the start of construction are targeted for the end of 2026, subject to completion of the necessary approvals and financing arrangements.
- Has the Czech Republic used motorway PPPs before? Yes. The D4 motorway PPP entered operation in December 2024, providing a domestic precedent for privately financed motorway delivery and long-term maintenance.
Strategic Takeaways
- Combining new construction with the management of an adjoining motorway section allows the D35 concession to cover a continuous strategic route under one long-term contractual arrangement.
- Availability-based financing links the concessionaire’s revenue to infrastructure performance, with the precise obligations and risk allocation determined by the final agreement.
- The Dětřichov and Maletín tunnels introduce substantial construction and lifecycle maintenance requirements, particularly for mechanical, electrical and safety systems.
- The €2.9 billion present-value figure reflects the concession’s long-term payment structure rather than its construction expenditure.
- Completion of the Opatovec to Mohelnice section will strengthen the D35 corridor, although its full contribution to relieving the D1 depends on progress elsewhere along the route.
