Soud: The Blanka tunnel contract is valid, construction is set to resume

Prague - The contract for the construction of the Blanka tunnel complex between Prague and Metrostav, which the capital questioned, is valid. This follows a preliminary verdict from the arbitration court, announced today by Metrostav spokesperson František Polák. Deputy Mayor Jiří Nouza (TOP 09) disagrees with this, stating that the validity of the contracts will still be addressed by judges. According to Nouza, the construction company must resume work in the tunnel, and Prague must pay for it. However, Polák stated that the work should only be resumed to a limited extent. The arbitrators are bound by confidentiality and do not wish to comment on the course of the dispute.
“The arbitration court has decided today that the contract for the supply of the Blanka tunnel complex is valid. It has also ordered Metrostav a.s. to continue work on selected construction objects to the extent of approximately 40 million CZK and has adjourned the proceedings until March 10,” Polák said in a statement to ČTK. According to him, the court will address the company's claims for the payment of the claimed amount and any further city proposals for the continuation of work aimed at bringing the construction into operation at the next meeting.
“The court has ordered Metrostav to continue construction in a way that prevents damage,” Nouza told ČTK. Work should begin no later than within sixty days. At the same time, Prague must pay for completed work, always no later than within 21 days. However, according to him, the proceedings regarding the validity or invalidity of the contracts are still ongoing. “I consider the outcome of the proceedings a success,” he added.
The dispute reached the arbitration court after Metrostav suspended tunnel construction on December 7. The reason is primarily unpaid invoices totaling 2.155 billion CZK. The court has not yet ruled on the payment of this amount. According to politicians, Prague has the money for the tunnel, but is concerned about the invalidity of contracts with Metrostav. Therefore, they reportedly cannot settle the invoices legally.
The tunnel is, meanwhile, nearly completed. “The largest part of the works remaining involves the Troja Bridge, where we need to install railings and lighting, finish the roadway and sidewalk layer, complete the tram track, finish drainage, and connect the bridge on both sides to the existing roads,” Polák listed the unfinished tasks in December. Metrostav also needs to connect cables between approximately 20 intersections so that they can communicate with the systems in the Blanka tunnel and build a 14-hectare park in Letná.
“The last items, which are trivial from a financial perspective but extremely demanding from a timing perspective, are the so-called finishing works. These include, for example, fire seals for cables passing through the wall, inspections of all doors, finishing cladding around devices, where a few tiles may be missing, and similar small details that are numerous,” he noted.
The Blanka project, which will cost Prague about 36 billion CZK, was originally supposed to serve drivers as early as 2011. The deadline was later pushed to spring 2014, and now Mayor Tomáš Hudeček (TOP 09) speaks of the end of summer.
“I welcome the interim decision of the court as a higher authority because the city can complete Blanka together with Metrostav without further disputes and challenges,” the mayor told ČTK today. “I didn’t want to allow the completion of Blanka to be questioned. The tribunal made a decision in a very short time; there will be no blockage of construction,” he added.
However, this is disputed by the opposition ODS. “Tomáš Hudeček has demonstrated his absolute incompetence by declaring the contract with Metrostav invalid at the end of last year,” said the chairman of the Prague ODS, Filip Humplík, in response to the court's decision. “It is one of his further escapades, which the residents of Prague are suffering from due to the extended completion of such a problematic tunnel complex,” he claims.
Prague will pay over 22 million CZK for legal services related to the dispute. However, the opposition ODS asserts that the legal wrangling and costs associated with stopping the construction could ultimately cost Prague 100 million.