Prague’s Metro D Line Faces Setback as Competition Office Issues Preliminary Injunction on Contract

The Office for the Protection of Competition (ÚOHS) in Prague has delivered a preliminary injunction to the city’s transport company, halting the contract with the winning bidder for the second phase of the new Metro D line construction. This development, announced by spokesperson Martin Švanda, underscores a regulatory intervention in the ongoing administrative proceedings, emphasizing that the injunction doesn’t predetermine the final outcome.

The issuance of the preliminary injunction was first reported by Seznam Zprávy. Martin Švanda highlighted that such injunctions have been issued in each of the three ongoing administrative proceedings related to the Metro D construction. The injunction aligns with the legal blocking period, preventing the contractor, Subterra from the Metrostav group, from finalizing the contract for 60 days from the proposal’s submission.

Subterra secured the thirty-billion contract in September, prevailing over a two-billion-cheaper offer by an association led by Porr and Vinci, which was excluded by the transport company for allegedly not meeting tender conditions.

The legal landscape surrounding the tender is complex, with Metrostav being the first to challenge the process, and administrative proceedings still underway. Additionally, the association led by Porr and Vinci has lodged challenges with the ÚOHS, joined by a motion from the Strabag company.

The construction of the new Prague metro line commenced last year, with the Pankrác to Olbrachtova section currently under construction. The contested tender pertains to the Olbrachtova to Nové Dvory section, with the subsequent section extending to Depo Písnice completing the project. The preliminary injunction injects uncertainty into the timeline of Metro D’s expansion, signaling potential delays as regulatory scrutiny continues.

Article by Prague Forum

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