Construction of Public Infrastructure
5.2. 2021
The Czech-Moravian Guarantee and Development Bank (ČMZRB) signed two memoranda on cooperation as part of an effort to increase its involvement in public infrastructure financing. In December 2020, the bank signed a memorandum with the City of Pardubice, which is the capital of the Pardubice Region and one of the main regional centres in Eastern Bohemia. In January 2021, the bank signed a memorandum with the Moravian-Silesian Region, which is located in the north-eastern part of the Czech Republic.
While the City of Pardubice has a strong industrial tradition, it presents itself as a modern city investing into education, research and business development. In 2019, it gained the title of “the city for business” among almost 230 Czech cities and towns. On the other side, the Moravian-Silesian Region still relies on coal mining and steel industry, which are less and less economically viable and environmentally sustainable. The region will have to undergo a deep transformation in the next years.
Despite different problems, both Pardubice and Moravian-Silesian Region can gain from the cooperation with the bank. The City of Pardubice plans to invest into infrastructure development. Social and transport projects are being prepared for possible financing through public-private-partnership (PPP), which can involve also the newly established bank´s subsidiary company National Development Fund.
Moravian-Silesian Region plans to invest primarily in infrastructure development and revitalization of areas affected by mining activities, which can be financed from the Just Transition Mechanism. ČMZRB will assist the region with the selection of viable projects and their assessment, including the offer of appropriate financing.
In both cases, ČMZRB and National Development Fund can play an important role in access to investment through loan or guarantee schemes, playing the complementary role to grant financing on a regional level.
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