Metrostav filed a lawsuit against Prague for 2.155 billion CZK owed

Prague - Metrostav has filed a lawsuit against the Prague City Hall at the arbitration court. It demands reimbursement of 2.155 billion crowns for the construction of the Blanka tunnel. František Polák, the company's spokesperson, informed ČTK about this today. He reiterated that the company would halt work on this project on Saturday.
    Metrostav is claiming from the capital city the amount of 2.155 billion crowns for unpaid invoices for work performed on the construction of the city ring road Myslbekova - Pelc Tyrolka - Blanka tunnels, Polák told ČTK.
    Metrostav is in dispute with the city over the validity of the contract under which it is constructing the Blanka tunnel. The city leadership asserts that the contract is likely invalid and although it has the owed money, it cannot pay it out. "The declaration of the council is that Prague has these funds for construction," said Mayor Tomáš Hudeček (TOP 09) after the last council meeting.
    Prague negotiated with Metrostav last week, but unsuccessfully. Both sides could not agree on whether the contract and its amendments are valid or not. Following this, Metrostav announced that it would turn to the arbitration court.
    The arbitration proceedings at the court will address the questions of how to resolve mutual obligations and claims, and under what conditions and how to continue the construction, complete it, and take it over. "We would consider the most optimal solution to be one that deviates as little as possible from the rules already defined, even in an invalid contract, meaning the subject of performance, the price, and warranties based on this contract," Hudeček said earlier. The Deputy Mayor Jiří Nouza (TOP 09) later stated that Prague had also started negotiations with the company ČKD Praha DIZ, which is building the technological part. According to Nouza, ČKD can continue its work, as it has its own contract with the city.
    The construction is also facing other problems. According to a report from the City Hall's control department, for example, there are discrepancies in the amounts listed in the documentation for individual constructions submitted by the accounting department and the amounts recorded by the municipal investor department. The difference in amounts for the construction part is up to 400 million. "Due to the stated discrepancies, the accounting may appear to be incorrect, incomplete, unproven, unclear, and confusing," states the document from the control activities department.
    The Blanka tunnel was originally supposed to be operational in 2011, but the deadline has been pushed to spring 2014. The costs for construction work and technology were supposed to be around 26 billion crowns, but now there are talks of a more than ten billion increase. The annual costs for halting and conserving the construction are estimated by Prague at 1.6 billion crowns.