The study showed four funding options for the D metro line

Prague - A study examining the possibility of financing the construction of the Prague metro line D has revealed four ways to obtain funds. According to the chairman of the transport committee of the Prague council, David Vodrážka (ODS), it is unrealistic to finance the construction from the budget of the capital city. The new line is expected to begin construction in 2010 according to estimates.
The study suggests that the construction could be financed through public-private partnership (PPP), loans, loans from the European Investment Bank, or from the budget of the City of Prague. "The transport committee acknowledged these models; there was no other purpose for the meeting," said Vodrážka to ČTK. According to the chairman, all options have their advantages and disadvantages. The city is still waiting for a review report to be prepared by the Czech Technical University.
"I would rule out financing from the budget of the capital city; such a large-scale investment is unrealistic from the budget," stated Vodrážka. The PPP project has the disadvantage that the interest rate is significantly higher in such a case than with a loan. On the other hand, the city would not have to start making payments immediately, but only after the completion of the metro. The repayment period would be quite long, 40 years. Although the loan offers a lower interest rate, it must start being repaid immediately, and the city would settle the debt sooner in this case as well.
"I am not a proponent of PPP," said Jiří Witzany (SNK ED), a member of the transport committee to ČTK. Witzany believes it is the most expensive method of financing; conversely, loans from the European Investment Bank would work out best, he claims. "In the given situation, I don't think starting this construction concurrently with the metro line A would be realistic," Witzany stated. According to Witzany, the construction is more a matter of future years. Building metro line D, according to the study, will cost approximately 60 billion crowns.
City councilor Radovan Šteiner previously stated that it looks good for PPP at the preliminary stage. He would like the competition for selecting a strategic partner to be announced this year.
The construction of the new line is expected to begin in 2010. The first section from Pankrác through the stations Olbrachtova, Nádraží Krč, Nemocnice Krč to Nové Dvory is expected to be in operation four years later. In the following two years, construction is expected to continue to Písnice. The northern part of the route, which will run from Pankrác to the Náměstí Míru and Hlavní nádraží stations, is expected to be in operation in 2018.
For the preparation of the construction of line D, the city has allocated ten million crowns this year, which is sufficient for studies. For the preparation of the extension of line A, 100 million crowns has been earmarked in the budget. The construction of the extension of line A from Dejvická is expected to start in two years. The city intends to use a grant from the European Union for these purposes, estimated at nine billion crowns. Total costs have previously been estimated at 38 billion crowns.