photo: DPP / Public domain/Metro D
Companies interested in participating in the Prague Metro D project are calling for a postponement of the tender process. The scandals surrounding the construction of the metro, including issues at the Prague Public Transit Company (DPP), conflict with their ethical codes.
Major international companies that aim to participate in the Metro D project point out that it is impossible to proceed with tenders under the current circumstances at DPP. They insist that all tenders must be conducted with maximum transparency.
This, however, is complicated by the recent dismissal of several members of the DPP Board of Directors, including CEO and Chairman Petr Witowski. The company is now under interim leadership, headed by Vice-Chairman Ladislav Urbánek.
According to international stakeholders who want to participate in the tender, it is crucial to resume the process only after a new DPP management is appointed and all the unresolved issues surrounding the escalating scandal are addressed. Currently, investigations are focused on 14 individuals.
The Prague Public Transit Company (DPP) has communicated with the companies. It initially responded to the postponement request by stating it was submitted after the legal deadline and would not be accepted. "However, the dismissal of DPP members and the announcement of investigations into others occurred only after the deadline. Therefore, we consider this argument irrelevant," one representative of the multinational companies told RAILTARGET.
Subsequently, the DPP extended the submission period by one week on its website. However, the companies claim that this is insufficient. The Metro D project has already been delayed due to investigations and scandals, so there is no reason not to push back the tender for a significantly longer period. They argue that there is ample time to accommodate this.
Additionally, many technical details remain unresolved and should be transparently decided upon by the new DPP management. For example, it is yet to be determined whether the new metro line will operate with a new security system or if the older system will be integrated. The most pressing issue at the moment is how to harmonize operations with all the required technical specifications.
A significant topic of discussion is the metro car units, where qualification criteria for offered vehicles are being revised. The question remains whether these aspects should also be addressed by the new leadership to ensure full transparency.
Currently, all companies are expected to participate in the so-called qualification process, where they will undergo an initial analysis. If they qualify, they will then submit bids for public tenders. Even during the qualification phase, technical parameters are a key concern.
Ethical Codes and Corruption Concerns
Most companies today adhere to an ethical code, which defines their social and legal standards of operation. These codes are particularly emphasized among large multinational corporations. Given the corruption scandal shaking DPP and the Metro D construction, many companies consider participation in the tenders to be a violation of their internal regulations. From this perspective, the Prague Public Transit Company (DPP) should accept the demand for postponing the tenders, especially since it is unclear how far-reaching the implications of this corruption affair are. Only by doing so can maximum transparency be achieved.
Escalating Scandal at Prague’s Public Transit Company
Last Monday, a police raid took place at the Prague Public Transit Company (DPP) headquarters, resulting in charges against 13 individuals. Authorities are investigating allegations of bribery related to public procurement contracts involving the city-owned company.
Following the raid by the National Centre Against Organized Crime (NCOZ), the Supervisory Board held a meeting at the beginning of the week, where it dismissed Chairman Petr Witowski and other executives, including Marek Kopřiva and Jiří Špička. Ladislav Urbánek, the former Vice-Chairman, was appointed interim chairman, according to Prazsky.denik.cz.
The indictment claims that a group of individuals occupied key positions within the DPP to enable allied managers to manipulate tenders and secure kickbacks from winning companies. In response, the city of Prague has filed criminal complaints. Some contracts, as audits revealed, were overpriced, or, as the indictment states, involved corruption, according to Novinky.cz.
Metro D: The Largest Construction Project in Czech History
In early August 2024, it was reported that the DPP had, for the second time, selected a winner for the largest construction tender in Czech history—a CZK 30 billion project to extend Metro D. The winner, once again, was Subterra, part of the Metrostav group. The first decision had been clouded by doubts, with competitors alleging that Subterra had inflated its experience with similar projects. These concerns were confirmed by the Office for the Protection of Competition (ÚOHS) in January, forcing the DPP to reassess the bids.
To recap, in January, ÚOHS annulled the tender’s result, disqualifying the consortium led by Subterra and Hochtief. According to Novinky.cz, ÚOHS spokesman Martin Švanda stated, "ÚOHS canceled the decision to select a supplier and all subsequent actions by the Prague Public Transit Company (DPP) in the tender process for Metro D."
The initial rejection stemmed from missing references proving experience with specific technical procedures. However, subsequent investigations revealed that other offers, such as one led by Porr and Vinci, were excluded despite being CZK 2 billion cheaper. The DPP claimed these offers failed to meet tender conditions.
Metro D Construction Progress
The construction of Prague's new Metro D line began in 2022, with the first segment spanning 1 kilometer between Pankrác and Olbrachtova. The contested section from Olbrachtova to Nové Dvory will follow, and the final segment will connect Nové Dvory to the Písnice Depot. Due to ongoing disputes, further delays to the project are expected.
Source: Novinky,cz; Pražský deník; RAILTARGET