Metrostav has just raised the stakes in its long battle with the City of Prague over the Prague inner loop transport investment. The Czech construction giant is now demanding that the city pay an additional CZK 1bn to cover the costs of construction of the Troja bridge. Metrostrav’s claims against the city, which began from its work on the much-delayed Blanka tunnel, have soared to CZK 3.7bn.
The company’s relationship with the city deteriorated in December, when Metrostav halted construction on the Blanka tunnel, a key part of the inner-city ring road, claiming that the City of Prague had not paid for the work. City officials, however, had contested validity of the contracts with Metrostav and used that excuse for not paying the invoices. The Troja bridge is another contractual sticking point, as the city is disputing whether work completed on it was carried out in accordance with the contract signed by the two parties. Officials are also claiming that the originally agreed price of CZK 500m has now increased to CZK 1.2bn. The Blanka tunnel complex should have been completed in 2011.
