Record Budget for Transport Infrastructure – New Road Projects to Begin, Railway Projects Face Delays

Following the approval of the state budget, numerous new transport projects are set to begin in the Czech Republic. The state will allocate 169 billion koruna for this purpose – the highest amount ever. Several major projects are expected to start particularly in road construction.

With the adoption of the state budget, numerous new transport projects are being launched in the Czech Republic. A total of 169 billion koruna will flow into the State Fund for Transport Infrastructure this year – more than ever before.

The Directorate of Roads and Motorways (ŘSD) will operate in 2026 with a budget of 81 billion koruna. This will allow not only the continuation of ongoing construction works but also the launch of several new projects. As ŘSD Director Radek Mátl told the news channel ČT24, numerous contracts are expected to be signed immediately after the budget is published in the official gazette.

Among the most important projects is the construction of a new section of the D35 motorway between Hořice and Úlibice near Jičín. The approximately 16-kilometre route is expected to form a key connection between Jičín and Hradec Králové in the future. Construction was originally planned to begin last year but was delayed due to uncertain financing. The new route is intended primarily to relieve surrounding municipalities from heavy lorry traffic. Completion is scheduled for spring 2029.

In addition to the D35, several other projects are also set to begin, including the completion of the D11 motorway between Jaroměř and Trutnov as well as the Plasy bypass in the Plzeň region.

Foto: Ministerstvo dopravy ČR

Railway projects progressing more slowly

While road construction projects are now moving forward more quickly, some railway projects are progressing significantly more slowly. The state infrastructure manager Správa železnic is postponing, among other things, plans for a faster rail connection between Prague and Liberec.

The planned modernisation of the line near České Budějovice is also being delayed. The new railway line between Nemanice and Ševětín is intended to allow speeds of at least 160 kilometres per hour and will include two longer tunnels. However, the infrastructure manager plans to retender the project. Správa železnic cites financial constraints as well as changes in management and in the procurement process as reasons. The aim is to involve more companies in the tenders and thereby increase competition.

The state will allocate a total of 72 billion koruna for railway development this year. Priority projects include the Kladno–Ruzyně and Pilsen–German border lines.

Financing remains a long-term challenge

Despite the current record investments, financing transport infrastructure could become more difficult in the coming years, as funding gaps may emerge once European subsidies expire. Former transport minister Martin Kupka believes additional financing models will be necessary. In his view, public-private partnerships (PPP) as well as loans from the European Investment Bank could play an important role.

The government continues to pursue the goal of completing the country’s most important motorway connections by 2035. Negotiations on the state budget for the coming year are expected to begin as early as spring.