The Union of Construction Entrepreneurs (SPS) considers the length of permitting processes to be the biggest obstacle to planning construction projects. Unless these processes are changed, construction output will not improve. In addition to the construction of housing, which has been in short supply for a long time, the union said the Czech Republic also needs to start new construction of motorways, ring roads and railways.
“Slow construction and lagging transport infrastructure is unfortunately a reality in the Czech Republic. We have been drawing attention to this problem for a long time. Quality transport infrastructure is one of the conditions for the economic prosperity of the country,” said SPS President Jiří Nouza.
Environment Minister Petr Hladík (KDU-ČSL) has previously stated that investments in the construction of motorways, railways and energy efficiency are crucial for the development of the Czech construction industry. According to him, this can be helped by a modification of the linear law, which will make it possible to skip the appeal procedure for strategically important infrastructure constructions. The only way to appeal is through a judicial review. However, even this step is not a sufficient solution, according to the SPS. MPs will vote on the amendment to the line law on Friday.
“It is right that the government has given priority to the development of transport infrastructure. This is a key area. But unless the construction permitting process is significantly shortened and politicians at the national and local level find the courage to make difficult decisions, we will get nowhere,” Nouza said.
The SPS said the situation could be improved by a new construction law, which is due to come into force on 1 July next year. The law has been postponed twice and was originally due to come into force this summer. It also includes the forthcoming digitalisation of construction procedures. This has been blocked by the Office for the Protection of Competition due to a complaint by System Servis. It was supposed to participate in the tender for its implementation, but according to the company’s statement to Hospodářské noviny, it withdrew from the procedure due to the lack of transparency of the contract.
The fact that the digitalisation of construction procedures is insufficient has also been previously revealed, for example, in a study by Datarun. According to the study, digitisation could shorten the building permitting process from an average of 5.4 years to 1.25 years. 94 percent of construction companies think that the state is not ready for digitalisation, according to a May analysis by CEEC Research. Even analysts previously interviewed by the Czech News Agency are not sure whether the state will be able to introduce digitalisation of construction procedures by 1 July 2024. According to them, the construction procedure should be computerised first so that the introduction of digitisation does not hinder the amendment, which could contribute to shortening the permitting process.
Slow permitting processes are also hindering, for example, the reconstruction of the railway bridge in Prague’s Výtona district. In a press release, SPS states that experts believe that repairing the existing iron structure is economically disadvantageous and technically risky. A new project has therefore been drawn up which should meet all the requirements for functionality and transport serviceability. The Nebourat association has long opposed the new construction of the railway bridge. It would like to see the bridge reconstructed in its current form. A petition against demolition and new construction has so far been signed by around 18,000 people.
Source: SPS and CTK
