DigitalLow Risk

Prague Smart City Digital Backbone

Czech Republic · Eastern Europe · Concession

Deal Size

€680M

Target IRR

9–13%

PPP Model

Concession

Concession Term

20 years

StrategicGovernment-Pay

Deal Summary

A 20-year concession to build, operate, and transfer Prague's integrated smart city digital infrastructure — including a metro-area fiber ring, 1,800 smart traffic management nodes, 240 IoT sensor hubs, and a central city operations platform. Prague City Hall anchors 55% of revenue via a government availability payment. EU Digital Decade Facility co-funds 22% of capex.

Background

Prague ranks 8th in the EU Smart City Index but operates fragmented legacy digital infrastructure. The project consolidates fibre, IoT, traffic management, and city operations onto a single PPP-operated backbone, replacing 14 separate legacy systems. The Czech Republic's Digital Czech Republic strategy and EU Digital Decade commitments provide strong political backing.

Project Milestone Timeline

EU Grant Approval

Q2 2024Completed

RFP Issued

Q4 2024Completed

Preferred Bidder

Q2 2025Completed

Financial Close

Q4 2025In Progress

Phase 1 Deployment

Q2 2027Upcoming

Full Operations

Q1 2028Upcoming

Key Deal Risks & Mitigation

Technology obsolescence

Low

Built-in refresh cycle every 7 years in concession spec

ISP wholesale demand

Low

Govt availability payment covers 55% regardless of ISP take-up

CZK/EUR currency

Low

All revenue streams EUR-indexed; Czech koruna peg stable

EU grant compliance

Medium

EIB compliance team integrated into project governance