A last-minute agreement between the government and Kapsch, the Austrian company developing an electronic toll system in the Czech Republic, has averted the danger that the state will lose tens of millions of crowns in uncollected tolls after the new year.

It also means that tens of thousands of trucks that are now wearing down Czech roads and worsening pollution will have less incentive to dodge neighboring countries' tolls by passing through the Czech Republic.

The two sides arrived at a compromise Dec. 14 that will enable Kapsch to launch the collection of e-tolls on selected roads starting Jan. 1, 2007, as originally planned. The agreement follows months of legal battles from embittered e-toll tender losers and a recent controversy over provisions in the contract signed between Kapsch and the previous Social Democrat-led Cabinet.

The Cabinet agreed that Kapsch would run a two-week trial operation of its toll gates rather than the previously stipulated one month.

Kapsch agreed to provide the state with a 660 million Kč ($31 million) guarantee that it would compensate the state for any uncollected tolls that result from malfunctions of the system. The government will be able to fine Kapsch 6 million Kč for each day that the e-toll system does not work properly. The state is eligible for up to 8 million Kč more per day for uncollected tolls.

"We agreed to those guarantees because we've got faith that our systems will be working well," said Erwin Toplak, a member of the Kapsch board.

The responsibility for possible malfunctions had been a contentious issue for the government and Kapsch.

The current Civic Democratic Party-led Cabinet decided to revise the previous contract with Kapsch that was signed by former Transportation Minister Milan Šimonovský.

Kapsch won the e-toll tender in November 2005, but some of the losing bidders questioned the fairness of the bid, which delayed the plan and forced Kapsch to build 130 toll gates in nine months, a time window three months shorter than expected.

Starting Jan. 1, the state will collect this toll at an average rate of 4.05 Kč per kilometer from trucks weighing more than 12 metric tons (13 short tons). The system will cover 970 kilometers (601 miles) of express roads. Another 1,100 kilometers of roads will be added July 1.