CPI in the advertisement criticizes Prague for the contract for the repair of the metro

Prague - The CPI Property Group threatened Prague in today's advertisement in the E15 newspaper with criminal charges due to a contract for the repair of a metro station that it did not win. According to CPI, Prague councilors and the Prague Public Transit Company (DPP) violated the law when they agreed with other developers to establish a joint venture for the repair of the Nádraží Holešovice station. The CPI group, belonging to billionaire Radovan Vítek, stated that there was no transparent tender for the establishment of the venture and that it would submit a better offer than the competition in any future tender. DPP rejected the criticism, considering the selection of a partner to be correct, as it owns the most land in the vicinity.

According to previous information from E15, DPP agreed to create a joint venture with the company Nové Holešovice Development, which is owned by the developers Karlín Group and Ungelt Group. The joint venture is to be responsible for the repair of the northern vestibule of the Nádraží Holešovice metro station as well as the construction of offices or residential spaces in the area. DPP aims to sign a contract with the investor by the end of October. However, according to CPI, there was no tender, which could indicate a violation of the legal obligation to act with due care on the part of Prague's leadership and DPP.

"From the perspective of due care, we will forward this suggestion, in addition to the authorities of the capital city of Prague and the Office for the Protection of Economic Competition, also to the Supreme State Prosecutor's Office and Transparency International - Czech Republic for the purpose of reviewing the matter," writes CPI Property Group in a full-page advertisement in the newspaper.

"DPP's lands around the Nádraží Holešovice station are in themselves non-buildable, they are irregular, and without an agreement with the owners of the surrounding lands, their valorization or use for further development is not possible. DPP could sell its lands in the area, gaining a quick one-time income, but it would definitively lose influence over how the construction in the immediate vicinity of the metro station will take place," said Dan Šabík from DPP to ČTK.

According to Šabík, there are three owners of the land around the metro station whose agreement is necessary for construction. These are the capital city, DPP, and a subsidiary of the Nové Holešovice Development group. "CPI Property Group does not own any land in this area," Šabík stated.

In the text, the group offers to participate in any potential tender or to enter into existing contractual relationships in the joint venture under the same conditions as the competition, but will provide DPP with a better return. "Based on existing information, the CPI Property Group is also prepared to provide DPP in this context with a financial contribution of CZK 100,000,000 in addition to the performance agreed upon in the agreement with Nové Holešovice Development," states CPI.