Prague owes CZK 1.5bn for Blanka Tunnel construction

29 January 2013

The City of Prague owes CZK 1.5bn to the companies overseeing the construction of the Blanka tunnel in Prague 7, according to František Polák, spokesperson for the general contractor Metrostav. “We have not yet invoiced the city for an additional CZK 1bn for the work currently underway,” he told ČTK. Metrostav is currently in negotiations with the city about financing, he said. Despite the lack of payment, work continues. The tunnel is expected to be operational by April 2014.
The city claims that it stopped payments due to extensive project changes made during the course of construction. “The city is currently checking the changes so that payments can be made according to the law,” the city spokesperson, Tereza Králová, told ČTK. The city needs to check if all additional work was approved by the city and if it does not exceed 20 percent of the original contract, she said.
The city hqw also ordered an evaluation of the costs if construction is put on hold. Karel Březina, the opposition social democratic deputy, says the costs would run to CZK 800m.

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