The Czech capital has agreed in principle to provide the state with land towards creating a special government district in the Letňany area, Prime Minister Andrej Babiš (ANO) said.
Some 10,000 civil servants at the Ministry for Regional Development and dozens of other state bodies could be relocated there. A new hospital and apartment buildings would also be built in the area.
In return, Prague wants 60 billion crowns to complete the city ring road, to build apartments at the current Na Bulovce Hospital, and transfer ownership in dozens of buildings, including many now vacant.
PM Babiš said his government will send a specific offer to the city within 14 days. It is not yet clear how specifically the proposed exchanges should take place.
Earlier, the Prague City Councillor asked the prime minister for an unused state building that could serve the city instead of the Škoda Palace, which it now rents.
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