SZDC´s information on the project „Gateway through the railway junction Pilsen“


Prague – 12 August 2011 – The Railway Infrastructure Administration is most likely to save up to CZK 600 million during the construction of the „Gateway through the railway junction Pilsen“. This fact is indicated by interim results of the public tender for a contractor of this railway construction, which is one of the biggest, and the implementation will start soon. At present, the bids are being evaluated and the lowest price (CZK 942.26 million) has been offered by the company Skanska.

The tender is attended by eight firms and associations, whereas the second place is currently occupied by the association „Leonhard Wiess, BERGER BOHEMIA – the Pilsen Junction“ with their bid higher by nearly 20 million. The price bids lower than one billion were offered by other two associations; other four valued the construction at more than one billion Czech crowns. The highest price (CZK 1.314 billion) has been offered by the association Swietelsky Plzeň, Swietelsky Baugesellschaft Č.B. and  Swietelsky rail Č.B.

At the moment, other criteria such as extended warranty for work or the duration of track possessions are taken into consideration.

Given the common routine that the construction companies first offered the so-called „under-prices“ and later they demanded additional high payments for „extra work“, Pavel Dobeš, Minister of Transport asked Mr. Pavel Habarta, SŽDC´s Executive Director (SŽDC – investor of the construction) to personally negotiate the conditions of the Contract for Work with the future successful bidder, which would prevent the final price of the construction from being increased. „SŽDC´s standpoint is identical with the Minister´s view. No matter who the eventual winner from the competing firms will be – after the committee have presented their recommendation based on all criteria - we will demand an unequivocal fixed price,“ said Pavel Habarta.

The Gateway through the Pilsen Junction is a most significant construction which will substantially speed up the transport in the appropriate direction from Prague to Bavaria. The original estimate of the construction price was CZK 1.56 billion – this estimate was still based on „tables“ and procedures used in the past years. „It turned out that SŽDC´s pressure on construction companies in the area of prices had been successful. Last year, we succeeded in saving CZK 6 billion through better preparation of public tenders and mainly through negotiations with builders, and the present bids lower by 600 million than the estimate prove that a completely new and hard competitive environment is being created“, added Pavel Habarta who was appreciative of the cooperation with Pavel Dobeš, Minister of Transport.


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