photo: RAILTARGET/Fair Rail Press Conference
The chairwoman of the Fair Rail association raised several concerns at a press conference regarding the tender for rail services in Prague and the Central Bohemian Region, and the selection of new EMU 400 trains for České dráhy (Czech Railways).
Regional councillors are due to decide on a 30-year commitment worth CZK 165.2 billion (appox. EUR 6.8 billion). According to Fair Rail, several issues should be clarified before the contract is approved, particularly the difference between the estimated and offered price, the unusually high number of reserve units, the evaluation method and the lack of references for the new trains.
The contract is the largest railway tender in the history of the Czech Republic. Its estimated value was CZK 141.9 billion (approx. EUR 5.9 billion( excluding VAT, while the winning bid from České dráhy reached CZK 165.2 billion (approx. EUR 6.8 billion). The difference is therefore more than CZK 23 billion (approx. EUR 951 million).
"For a CZK 165 billion contract lasting thirty years, it is not enough to say that everything was formally carried out correctly. Councillors and the public need to know why the winning bid is more than CZK 23 billion higher, why the contract was tendered as one huge package and whether that restricted competition," said Fair Rail chairwoman Andrea Kneiflová.
According to her, the fact that only two bidders ultimately remained in the procurement process is another reason for concern.
Reserve Units Would Make Up a Quarter of the Fleet
Fair Rail is also critical of the required fleet structure. The tender calls for 44 units in regular operation and 16 reserve units. According to the association, reserve vehicles would therefore account for more than a quarter of the total fleet.
"In practice, this means that up to a quarter of the entire tender consists of reserve units. This is not what I consider efficient use of public money. If we took inspiration from abroad, we could save billions of crowns," Kneiflová said.
The association also points to the length of the planned commitment. The contract is to run for 30 years, which Fair Rail describes as unusually long. According to the association, tenders or concessions lasting around 12 years, and no more than 15 years, are more common in European Union countries.
Fair Rail Also Questions How the Trains Were Evaluated
Further criticism concerns the selection of the new EMU 400 units by state-owned operator České dráhy in a related tender. According to Fair Rail, service and maintenance costs during operation were not given sufficient weight in the evaluation. The purchase price accounted for approximately 91% of the assessment. The association argues that a lower purchase price does not necessarily mean lower costs over the full lifetime of the trains.
Andrea Kneiflová wants the total costs of operation and maintenance to be taken into account when the decision is made. "The cheapest train units selected at the purchase stage may become significantly more expensive during operation. A bid cannot be described as the best simply because it performs best in one part of the evaluation," she said.
Fair Rail Wants Councillors to Wait for the Competition Authority
Fair Rail also points to a complaint that is due to be examined by the Office for the Protection of Competition (ÚOHS). According to the association, one of the issues is whether the exceptionally long contract may have been difficult for private operators to finance. Fair Rail is calling on councillors not to approve the contract until a final decision has been issued by ÚOHS.
"Councillors are not deciding on just one tender. They are deciding what regional rail transport will look like for an entire generation. That is precisely why they should not vote until they are certain that the conditions were set transparently, economically and in line with the best European practice."