GEMO company to build arena in Jihlava for CZK 1.9 billion, gave the lowest bid

3 March 2023

The Horák multifunctional arena (HMA) in Jihlava will be built by the Olomouc company GEMO, which submitted the lowest bid in the tender procedure worth CZK 1.909 billion (VAT excluded). Five bidders were interested in the construction, and the city council approved the conclusion of the contract with the selected contractor on Thursday. The bidders still have 15 days to appeal. If construction of the arena can start in late June and early July, it should be completed by September 2025.

The evaluation committee last met this week on Tuesday. “We re-evaluated whether all the criteria are met, as far as the most advantageous bid is concerned,” the mayor said. After Thursday’s council decision, the city sent the results of the bidding process to the bidders. If they do not appeal, the contract with GEMO could be signed by March 23.

“The vote, which took place yesterday (Thursday) at the city council, was unanimous. This means that this procedure, which was presented here, has 100 percent support from the current city leadership,” said Radek Popelka, deputy mayor of the ANO movement.

According to the set deadlines, construction work could begin in June or late June or early July, Ryska said. First, the old stadium will be demolished and the arena will be built on its site. The company will have 26 months to demolish and build the new one.

The city has been promised CZK 800 million in subsidies for the arena – half a billion from the region and CZK 300 million from the National Sports Agency (NSA). It is covering the remaining costs with loans and its own money. “We would like to reduce the city’s share, as we have declared several times. We firmly believe that we will still manage to get some resources,” Ryska said.

Among the other bidders for the arena was a consortium of companies Syner and Geosan Group with a price of CZK 1.988 billion. The association HMA – Metrostav DIZ, OHLA ŽS, Podzimek sent a price offer of CZK 2.083 billion, BAK stavební společnost, a.s., offered to build the Jihlava arena for CZK 2.199 billion and the joint-stock company PKS stavby for CZK 2.242 billion. These are the bids without VAT.

The bids were received by the city hall last July. The selection was prolonged because the amounts were higher than Jihlava had originally expected. The city decided to cover the missing half a billion with another loan and money left over from last year’s financial year.

“GEMO is a major construction company, with a turnover of around four to five billion crowns, employing hundreds of people,” said David Beke (ODS), a city councillor and HMA construction manager. He added that the company has carried out major construction projects in Prague and northern Moravia, for example. “The references we have managed to get are all positive,” he said.

The old ice stadium in Jihlava has been closed since last year due to poor roofing, while the Dukla hockey team plays matches in Pelhřimov and Jindřichův Hradec. The new arena will not only be used for hockey and other sports, it is also planned to host cultural and social events. The construction also includes accommodation, catering facilities and underground parking.

Source: GEMO and CTK

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