This article examines the concerns raised regarding the conditions of a major railway tender in the Czech Republic.
Significant Tender Details and Approval Process
The Czech Republic’s largest railway tender, concerning regional transport in Prague and Central Bohemia, has recently concluded with České dráhy winning the contract. They proposed a bid of 165.2 billion crowns for the next 30 years, which is approximately 23 billion crowns above the anticipated cost. This outcome has been approved by the Central Bohemian Region council and is set to be discussed by regional representatives. Importantly, the approval from the Prague council is not required, which means the final decision may hinge solely on the Office for the Protection of Competition (ÚOHS). This raises questions about the transparency and competitiveness of the procurement process.
Concerns Over Pricing and Contract Length
Critics, including the Swiss manufacturer Stadler and the advocacy group Fair Rail, have raised alarms regarding the high bid and the unusually long contract duration of 30 years. Typically, similar contracts in Europe are awarded for shorter periods, often not exceeding 15 years. The rationale provided by officials suggests that a longer term is necessary to justify the investment in new rolling stock and maintenance facilities. However, this reasoning has been met with scepticism, as many industry players believe that such a lengthy commitment could hinder the adoption of new technologies and fail to adapt to changing transport demands over time.
Allegations of Unfair Competitive Practices
The tender process has not only faced scrutiny over its terms but also allegations of potential unfair competitive practices. Fair Rail has called for clarity on the specific parameters set for the tender, particularly the rationale behind the chosen specifications and the significant weight placed on price in the evaluation process. With 91% of the decision criteria based on cost, concerns have been raised about whether this approach adequately considers long-term operational costs and service quality. Additionally, the unusually long warranty offered by Škoda Group, which is 15 years compared to competitors’ 2 to 3 years, has led to suspicions that the winning bidder may recuperate warranty costs through inflated maintenance charges.
IN NUMBERS
As the situation develops, the decisions made by the Central Bohemian Region and Prague councils, alongside the findings from the ÚOHS, will significantly impact the future of railway transport in the Czech Republic.
Reported from seznamzpravy.cz, 2026-09-06. The Tender Wire is published by Otnox.
