Skanska’s Bypass I/12 Project: A Beacon of Growth in EU-Funded Central European Infrastructure

The European Union’s infrastructure boom is not just a policy slogan—it is a tangible reality reshaping economies, landscapes, and investment opportunities. Nowhere is this clearer than in Central Europe, where projects like Skanska’s newly contracted Bypass I/12 near Prague exemplify the confluence of strategic investment, EU funding, and long-term economic resilience. This 12.6-kilometer road project, valued at SEK 1.7 billion, is far more than a construction milestone: it is a gateway to a region primed for growth.

The Bypass I/12: A Blueprint for Modern Infrastructure

The Bypass I/12—officially named I/12 Běchovice-Úvaly—will divert transit traffic away from eastern Prague’s densely populated districts, reducing congestion, emissions, and noise pollution. With 23 bridges and six multi-level crossings, it is engineered to enhance safety and connectivity while aligning with the Czech Republic’s sustainability goals. Construction begins in July 2025, with completion expected by late 2027.

This project is a microcosm of Skanska’s expertise in delivering large-scale, environmentally conscious infrastructure. As a contractor, Skanska has secured a 30-year track record of on-time, budget-friendly projects across Europe, including major rail and road networks. The Bypass I/12’s inclusion in Skanska’s Q2 2025 order bookings underscores its strategic value to the company’s growth trajectory.

The EU Funding Ecosystem: Why Central Europe is the New Frontier

While the Bypass I/12 is funded directly by the Czech National Highway Authority, its timing and scope align perfectly with the EU’s Connecting Europe Facility (CEF) Transport Programme, which has allocated €25.8 billion for infrastructure projects across the EU from 2021 to 2027. The CEF prioritizes projects that boost cross-border connectivity, decarbonize transport, and enhance climate resilience—exactly the goals of the Bypass I/12.

In 2025 alone, the CEF Transport programme received 258 applications requesting over €9.5 billion—far exceeding its €2.5 billion annual budget. This imbalance highlights surging demand for infrastructure investment in regions like Central Europe, where projects such as the Bypass I/12 can leverage EU frameworks to attract further funding or partnerships.

Why This Project Signals Opportunity

1. Geopolitical Stability and Growth: The Czech Republic, a CEE (Central and Eastern Europe) anchor, has seen steady GDP growth of 3–4% annually since 2019, fueled by EU grants and private investment. The Bypass I/12’s location near Prague positions it at the heart of this growth, improving logistics for industries from manufacturing to tech.
2. Climate Alignment: The project reduces urban emissions by rerouting traffic, directly supporting the EU’s 2050 climate neutrality target. Such projects are increasingly prioritized in EU funding rounds.
3. Skanska’s Track Record: With SEK 177 billion in 2024 revenue, Skanska is a trusted partner for complex infrastructure. Its portfolio includes green projects like Sweden’s Västlänken tunnel and renewable energy hubs, proving its ability to deliver returns while meeting sustainability standards.

Risks and Mitigations

Critics may cite delays or cost overruns common in infrastructure projects. However, Skanska’s on-time delivery of the €527 million Czech railway upgrade (funded via the EIB in 2024) demonstrates its ability to manage risks. Additionally, the Czech government’s €85 billion infrastructure pipeline through 2030 ensures sustained demand for Skanska’s services.

A Call to Invest in the Region’s Future

The Bypass I/12 is not an isolated project—it is part of a €2.47 billion EIB-funded pipeline in the Czech Republic alone, targeting railways, energy grids, and SMEs. Investors who recognize Central Europe’s strategic importance will find Skanska’s involvement in this project a low-risk, high-reward entry point into a region where EU funding guarantees long-term momentum.

Act now: With construction starting this summer and completion by late 2027, the Bypass I/12’s timeline aligns with EU funding cycles. Investors can capitalize on near-term gains while securing exposure to a region where infrastructure is the engine of growth.

The road to returns is clear—Skanska’s Bypass I/12 is paving the way.