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Multi-Billion Euro Prague Metro Tender Sparks Scandal and Delays

Multi-Billion Euro Prague Metro Tender Sparks Scandal and Delays
photo: Institute of Planning and Development (IPR Prague)/Visualisation of Prague Metro D; illustrative photo
24 / 01 / 2025

The largest tender in the history of Prague's Public Transit Company (DPP) is under scrutiny. Swiss train manufacturer Stadler has accused DPP of discrimination, challenging the tender’s conditions on international references and certifications.

The Prague Public Transit Company (DPP) is managing its most ambitious project yet—the procurement of brand-new trains for lines C and D, along with a complete metro modernization. However, the nearly EUR 3.6 billion tender has hit a major roadblock. Swiss train manufacturer Stadler has filed a complaint with the Office for the Protection of Competition (ÚOHS), alleging that the tender's requirements significantly limit competition.

A Dispute Over References: Discrimination or Quality Assurance?

Documents obtained by RAILTARGET reveal that the core issue lies in a requirement for operational experience with trains equipped with GoA3 automation. This system enables semi-autonomous operation with an onboard operator ready to take control if needed.

The situation is particularly ironic: Stadler supplied Glasgow with metro trains capable of GoA4 automation, which allows full autonomy without onboard staff. Despite meeting higher standards, Stadler’s reference was rejected—not because of the manufacturer, but due to delays in Glasgow’s infrastructure construction. As a result, the metro has not yet begun regular operation.

Stadler argues that this "paper deficit" unfairly penalizes them, as their technology meets all required standards. DPP, however, maintains that only references from fully operational services carrying passengers can be accepted. This stance excludes Glasgow's metro as a valid reference.

Current Tender Status: Competitors in the Race

While Stadler remains excluded, two consortia have joined the race. The first is a partnership between Škoda and Siemens, and France's Alstom leads the second. These groups will compete for a monumental contract that includes the delivery of 69 fully automated trains, depot equipment, dispatching systems, and infrastructure modernization for both metro lines. Line D is set to be built from scratch, while line C will undergo automation of its current operations.

The Role of Foreign Competition

The Czech Republic has long benefited from an open competitive market, especially for large-scale projects like the Prague metro. Welcoming reputable international players like Stadler could lead to more than just modern trains. Foreign competition drives lower prices, higher quality, and greater transparency. Stadler, a global leader, supplies modern metro trains to cities like Berlin, Minsk, Atlanta, and soon, Glasgow.

DPP's Troubled History

The entire tender process unfolds under the shadow of DPP's controversial past. The Dozimetr scandal, which involved the arrest of former DPP director Petr Witowski during a raid by the National Organized Crime Agency, continues to haunt the company.

Leadership remains in flux, as DPP is still searching for a new CEO, with the recruitment process expected to conclude this year. A recent audit also revealed troubling findings: between 2014 and 2022, DPP conducted business with 16 companies linked to suspects in the Dozimetr case, spending over EUR 30 million on these contracts.

The audit findings were set to be discussed at a Prague City Council meeting yesterday, January 23, 2025.

What Lies Ahead?

Leadership instability raises doubts about DPP's ability to manage a project of this scale effectively. The outcome now rests in the hands of ÚOHS, whose decision will determine the project's future. Until then, Prague’s metro, both literally and figuratively, is still searching for light at the end of the tunnel.

Source: RAILTARGET; cnn.iprima.cz

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