New Prague Mayor Bohuslav Svoboda has said that the 6.3km-long Blanka tunnel project will cost an extra CZK 10bn (USD 561.51M), raising the total to CZK 37bn (USD 2.08bn).
The responsibility for the overruns is a subject of debate.
“The cost of Blanka is going up by roughly CZK 10bn, a huge sum, and we have to analyse how this happened,” Svoboda said. He added, “We are analysing the original plans to find out where costs went up and why and to what extent they are justified. We also have to meet with the developer to discuss the whole problem. The jump from the original cost is so high that there is no way the city can pay it.”
Metrostav is the main contractor on the project and responsible for all construction works. Metrostav project director Ermin Stehlik told T&TI, “Metrostav is working according to the valid agreement, which is based on the International Federation of Consulting Engineers’ (FIDIC’s) ‘Red Book’. This means that a ‘measurement’ contract is applied, with the originally estimated total costs for construction, and electrical and mechanical parts, and also for the client’s part in land acquisition, engineering and design, geological investigation and geotechnical monitoring.
“The newly estimated costs are in the same structure as above, which includes all completed works accepted by the client and estimates of works needed for completion [of the project], including the increase due to the time extension as a result of insufficient funding.”
As T&TI went to press investigations and negotiations were ongoing between contractors and clients. The Prague Magistrate is verifying the agreement, which comprises over 4000 pages including addendums, as ordered by the Mayor.
With the change in the city administration, and even before, the project became a political football.
The previous administration had assured the public that the tunnel construction would be finished on time and within budget. Local media have claimed that the large cost increase was due to Prague City Hall violating its own rules, including a directive requirement to discuss cost increases of over 10 per cent in large construction projects. According to the Hospordarscke Noviny daily newspaper, members of the previous controllers of City Hall (ODS party), including deputy mayors, blamed the previous mayor Pavel Bem and the investment department for the increase in project costs, claiming they knew nothing about it. The head of the investment department, Jiri Toman, was recently dismissed from post. Bem, however, blames the new administration that took over in December.
Construction has been progressing steadily with section breakthroughs recently reported, following the stop on work ordered by safety authorities following the most recent, third collapse last July.
