The leadership of Prague will have the value of the state's equity stake in the Congress Center appraised

Prague - The leadership of Prague will have an expert report prepared to determine the value of the state's ownership share in the Congress Center Prague (KCP). The valuation will serve for negotiations between Prague and the state regarding the acquisition of the state's share by the capital city. This is indicated in a document approved today by the city's councilors. The basic capital of KCP amounts to 3.68 billion crowns, with the state owning 54.35 percent of the shares through the Ministry of Finance (MF). KCP manages the congress building in Nusle and the adjacent hotel and business center. The joint-stock company KCP was established on July 1, 1995.

"In light of the long-standing disputes between both shareholders... a politically agreed option for the purchase of the MF share in KCP has been decided. For this purpose, it is necessary to prepare an expert valuation of the MF share," the document states. The disputes concern, for example, investments in the construction of a new exhibition hall or the renovation of garages. Both parties agreed that the magistrate would have the report prepared.

The mentioned basic capital of the center consists of 368 registered shares, in book-entry form with a nominal value of ten million crowns for each share. The capital city holds 168 shares, while the rest belongs to the state.

The expansion of the center has been discussed for many years, and a few years ago an architectural competition was held in which the Spanish office OCA won. The architects proposed a new elongated building to the south of the current building intended for accompanying exhibitions of various congresses. The main exhibition hall is to have a variable interior space that can be adjusted according to the needs of individual exhibitions. In the past, there was also talk of an extension on the northern side towards the Nusle Valley.

The state entered the ownership structure of KCP about ten years ago. The reason was financial difficulties that arose in 2000 in connection with the meeting of the International Monetary Fund and the World Bank. The state promised to cover the center's renovation at that time, but it did not do so, and KCP subsequently owed 4.5 billion CZK. Due to the repayment of the debt, there was no money left for investments in modernization or renovation. The company itself paid off more than half of the debt. KCP was debt-free only after the state entered its ownership at the end of 2013.

KCP achieved a profit of 79.6 million crowns in 2022, while the previous year ended with a loss due to measures against the COVID-19 pandemic. Revenues reached 596.2 million, which is a year-on-year increase of 107 percent. Over 200,000 people passed through the center two years ago, and around 262 events took place there.