CZECH REPUBLIC
In the Heart of Europe


V.I.P. INTERVIEWS
MR. JIRI KUBÍNEK Interview with
MR. JIRI KUBÍNEK


Deputy Minister for Air and Road Transport
Prague, 13th of October, 2002
Tel: +420 251 431 181
Fax: +420 222 316 171
www.mdcr.cz


What are your first points on the agenda with regard to the infrastructure?

I have been, together with the Minister of Transport, on my position for two months only, and one of the major projects, the project D47 has been already underway at that time, as the first BOT project. It is the first project when the private capital takes part in the building of a road. So we are paying a lot of attention to the preparation of the project, we see that it needs a lot of attention from our side and we would like to finish the development of the road infrastructure by the year 2010. Also we have to mention a division that was created last year, it is a new regional roads directorate that is a joint venture between the state and the companies. We have to look for new co-operation models and also for new sources. Here we have to take into consideration the public, everybody who is holding a steering wheel is not interested in who owns the road, but he is interested in knowing that the road is good. So in this sense we have more work and the task is to be more realistic this time.

Road transportation is very capital intense. Has it also benefited from the presence of foreign capital?

I would like to say that the above mentioned project is the first of its kind where the private and foreign investment is combined, in an Israeli project. We have to work with some banks, for instance Deutsche Bank, and it is actually the first new big European project.

When you speak about a big European project, you mean interconnecting the road system of the Czech Republic with the EU?

All these projects that we are working on currently are part of our international commitment. Right now, we are working on D47 that is a road that will lead from Ostrava southwards and is to connect to the north and the south of Europe. Also we will be working on a new road called the D8, which will be leading in direction Dresden, and another one, D5 that will connect Plzen and Germany. All these projects represent our commitment to connect the Czech roads with Europe. The D47 road project will connect to the highway A1, which is a Polish highway, it is like the Trans European Highway but more towards the west.

Looking at the area of your responsibilities, more precisely air transportation, how are you improving airports in the Czech Republic and what are your expectations in that field?

We are expecting a lot of work, the so called Schengen agreement has been signed and we are looking forward to a lot of work on the airport to make sure it complies fully with the European Union laws. Right now, there is a tender for the financial management of the project. Work will take approximately 1 year and the costs will be around 10 million Czech crowns because by the year 2003 we have to comply absolutely with the criteria of the Schengen agreement.

Is this only for Prague airport or also for other regional airports?

It only concerns the Prague airport because it is the only international airport. We have Karlovy Vary, Brno and Ostrava but these are only regional airports and they belong to the administration of Czech Airlines. The Ostrava region would like to transfer its property and will be working on that too.

CSA is a member of Sky Team together with with Air France and other carriers, how is this co-operation helping the company improve and become more international?

I think it is a mutually beneficial co-operation. I think that the airline market is pretty much divided, new markets are hard to find and as an industry we have to co-operate with each other more. I think this tendency will continue also in the future, I think that smaller companies will have to get together and that their offer will have to be wider. I think it is a very good thing that CSA is a part of Sky Team because their selection is larger, and now the company is able to travel all around the world. If somebody comes to CSA counter and asks for a ticket to Mexico it is possible to help him and give him that service.

What do you see personally, as the main challenge you have in the next two or three years?

There are several things: the reform of public administration. The big change is that in the year 2003 the regional offices will be shut down and there will be new municipality offices of the third grade, and you as a citizen shouldn't recognise that there has been a change and if you want to take care of something than it should be as easy as it has been for now this includes the reform of the car and other related administration services, like for instance driving licenses, technical licenses for cars and driving schools. The second thing is the so called road industry, that is what we have been talking about - finishing the project D47, to finish the project that will connect our roads to the European highways, and the biggest challenge that I see is to find new sources for the construction and maintenance of roads in general, because the current public fund of the transport infrastructure won't allow us to expand according to our original plans. And also we have to take into account the co-operation with the European Union because we would like to use their funds for construction. Also, the airline industry, the first step is to finish the building of the so called north terminal of the airport because we would like to comply with the Schengen agreement, and we would like to change the structure of the public companies - the Czech Administration of Airports and other similar companies, to make them modern with shareholders. It is 12 years after the revolution; we think that public businesses are to be dead.

As you know many investors read this report, what would you say to the ones who read the report on the Czech Republic?

I think the biggest opportunities for them are in the financing and building of new roads and also reconstructing the old ones. As far as the airline industry is concerned, I think it is pretty much ready already.

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