Investor: Central Military Hospital, Prague and Ministry of Defence Investor Type: Central Government Budget: 2600 mil. CZK Project Type: PPP Project Line: Accomodation Stage: Being Realized Country: Czech Republic Modified: 10. 6. 2009

Description: The Authority’s and the Ministry of Defense’s strategic goal is to transform the Central Military Hospital in Prague into a top military healthcare facility comparable to similar facilities in other NATO members. The Central Military Hospital will be a training and educational facility that will educate military and civil physicians, cooperate with international institutions within NATO and EU and be ready to provide medical services to foreigners coming from NATO armies. The ongoing extensive reconstruction of the Central Military Hospital (CZK 2.5 billion have already been invested) is also part of this strategy.
The accommodation project is a top priority and a part of the above mentioned strategy, since project completion is necessary for the introduction of the so-called one-day surgery, which does not require inpatient treatment, but should provide accommodation for out-of-Prague patients for one or several days.
A lodging house for CMH staff will be also built in connection with the construction of the hotel-type lodging house and the parking lot.
Build a hotel-type lodging house that will provide a flexible accommodation capacity with about 250 beds, selected auxiliary services, including a restaurant, and a parking area in the Central Military Hospital. Build a lodging house for CMH staff.
The combined project of a lodging house for CMH staff, a hotel-type lodging house and a parking lot comprises several functional sections with different economic characteristics.
The project can be divided into two fundamental parts:

1. Public part used directly by the CMH and serving to deliver public services:
- lodging house for CMH staff (240 beds),
- swimming pool (within the lodging house for CMH staff),
- 20 beds in the hotel-type lodging house (hotel),
- 202 parking places in the underground parking lot,
- information centre,
- entrance gate.

2. Commercial part, which will provide accommodation and boarding for the CMH’s related activities (e.g. congresses and other events) and provide supporting services to ensure a sufficient interest of the private sector in the project:
- hotel (250 beds),
- hotel restaurant,
- conference center,
- 93 parking places in the underground parking lot,
- commercial retail areas.
The Outline Business Case was approved by Government Resolution No. 1082 dated 24th September 2007. The 3rd phase of the concession dialog with private partners is in process now.
The expected investment costs are about CZK 1 billion.

Preliminary projections envisage DBFO with transfer to the state on the beginning of the project.
Contract duration is estimated at 25 years now.
The strategic partner will bear the key risks, particularly construction and service availability risks, and partly also demand risks (for commercial activities). The Central Military Hospital and the Ministry of Defense will bear the risks associated with the failure to utilize the contracted capacity to full extent.
The Authority will pay a fixed charge for the capacity and activities agreed in advance. The operator will directly collect fees from the users as regards the selected activities and will have an income from permitted commercial activities.

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