William Malcolm

RSD To Become A State-Owned Enterprise

The government today approved an intention to transform the Directorate of Roads and Motorways (ŘSD) into a new state organization, the Administration of Motorways and Roads. It will operate on the model of the Railway Administration. This was stated today by the Minister of Transport Karel Havlíček. The Ministry of Transport promises to speed up and streamline road construction from the transformation.

“The substantive intent of the law on the transformation of the Directorate of Roads and Motorways into a state enterprise has just been approved by the government. An important step in maintaining the enormous pace of construction of motorways, roads, or bypasses.

The ministry should now prepare a bill by the end of September, which would legislatively establish a new state organization.

According to the Ministry of Transport, this will make the preparation and construction of transport infrastructure more efficient for the state and will also simplify cooperation for private suppliers. For current state-subsidized organizations, this should allow for extensive organizational and personnel changes. At present, the RSD has to comply with the Salary Regulations, which, according to the Office, does not allow for adequate remuneration of key employees and experts. According to the ministry, the new form of management will enable the new organization to better acquire its own experts and at the same time retain them in the long term. Until now, for example, ŘSD mainly used external workers for special constructions.

The transformation of ŘSD has been talked about for many years. The state first considered the establishment of a joint-stock company, now leaning towards a variant of state organization. The planned transformation of ŘSD into a state-owned enterprise will follow up on legislative changes to transport construction. The new building law, as well as the amendment to the law, as well as the so-called line law, should significantly speed up project preparation.