Metro D Faces New Delays as Antitrust Office Blocks Key Contract

The Czech Antitrust Office (ÚOHS) has issued a preliminary ruling, further complicating the construction of Prague’s new Metro D line. This is just the latest setback for Dopravní podnik Praha (DPP), which has already faced multiple legal obstacles in the tender process.

According to the ÚOHS ruling, DPP is prohibited from signing a contract for the public procurement project Trains and Transport System Automation for Line C and the New Line D. This decision represents yet another hurdle in the already complex metro expansion process. While preliminary rulings are not uncommon in public procurement, they have become increasingly frequent in major transport tenders in recent years.

The current administrative proceedings, under which this ruling was issued, were launched in early January at the request of STADLER, which objected to the technical qualification criteria outlined in the tender. Specifically, STADLER challenged the requirement that a referenced service "must have involved trainsets that were already in passenger operation", arguing that this unfairly excludes projects still in advanced stages of development. The company also criticized the qualification criteria for the security system specialist, citing excessive and cumulative requirements.

Antitrust Office and Preliminary Rulings

Although ÚOHS frequently issues preliminary rulings, their number has increased since the appointment of a new chairman in 2020. In this case, the ruling was issued ex officio, meaning DPP is legally barred from signing the contract for 60 days from the start of the review process (January 2, 2025). This restriction is set to expire on March 3, 2025.

Since ÚOHS determined that it was necessary to extend legal protections beyond the initial 60-day period, it issued a provisional ban on contract signing. However, the office clarified that this decision does not preempt the final ruling—rather, it aims to prevent the contract’s premature execution from undermining the administrative review process.

DPP has the option to appeal within 15 days, but given the scale of the contract, it is unlikely that the final decision will differ from the initial ruling.

Number of Preliminary Rulings Issued in Public Procurement by Year According to ÚOHS Annual Reports

Year	First-Instance Rulings	Second-Instance Rulings	Total	Source
2018	87	5	92	Page 20 and 24, ÚOHS Annual Report 2018
2019	76	5	81	Page 21 and 27, ÚOHS Annual Report 2019
2020	156	4	160	Page 30 and 38, ÚOHS Annual Report 2020
2021	102	3	105	Page 26 and 31, ÚOHS Annual Report 2021
2022	103	5	108	Page 32 and 37, ÚOHS Annual Report 2022
2023	126	3	129	Page 32 and 37, ÚOHS Annual Report 2023

 

Quote from the 2020 ÚOHS Annual Report, the Year Petr Mlsna Took Office: "In 2020, there was an increase of 142 in the total number of first-instance rulings issued, primarily due to a significantly higher number of preliminary ruling orders (an increase of 133.6%)."

DPP has emphasized its commitment to transparency and has engaged Transparency International (TI) to oversee the tender process. The two entities signed an Integrity Pact, under which TI will monitor the contract using internationally recognized mechanisms. In the initial phase, TI will oversee the public tender process and the selection of the contractor. The estimated contract value is CZK 85.98 billion (EUR 3.4 billion, excluding VAT). DPP expects to finalize the contractor selection and sign the contract by October 2025. TI’s involvement in the project was initiated by Prague City Hall, with a prior review of the tender documentation conducted in March 2024. However, skepticism remains about the effectiveness of external oversight, given that DPP’s internal audit mechanisms, such as the Audit Committee, are reportedly dysfunctional. This raises questions about the reliability of broader oversight measures and collaborative efforts.

Legal Expert’s Opinion on the Ruling

RAILTARGET sought insight from attorney Andrea Kneiflová of AKN Legal, who specializes in transparent and socially responsible public procurement: "I see this preliminary ruling as a positive step toward improving public procurement practices. Its purpose is to preserve legal conditions that closely align with the intended regulatory framework. Personally, I welcome the use of preliminary rulings in public procurement, as they demonstrate that oversight authorities take their role seriously and are committed to protecting both private rights and public interests."

Source: www.dpp.cz; uohs.gov.cz