Firm has snow clean-up monopoly

By Benjamin Cunningham and Klára Jiřičná

Staff Writers

For the next eight years, a single firm is charged with maintaining more than 2,300 kilometers worth of roadway in Prague, after the previous Civic Democratic (ODS) City Council approved a tender earlier this year on which the winning firm was the only bidder.

Prague Services (PS), a firm that is majority owned by the city, was the lone bidder on the 8 billion Kč contract that took effect June 1. The agreement makes PS the only company working to clear the capital city's major thoroughfares in the wake of inclement winter weather. Previously, Prague was divided into three districts with three different firms covering each territory.

The contract was approved by then-City Councilman Radovan Šteiner (ODS), who handled the transportation portfolio. The tender followed in the wake of a change in law in late 2009 that shifted increased responsibility for cleaning roads and sidewalks to City Hall as opposed to local municipalities. That change was opposed by several municipalities, led by authorities in Prague 6.

Critics allege the tender for the contract was written with PS specifically in mind with requirements so strict that no other firm could meet the conditions. They point to the decision by firms that have long cooperated with City Hall to decline even submitting bids. Among the contract's requirements was that any firm bidding on the contract have annual revenues surpassing 500 million Kč.

"Prague used to be divided into three competitive parts. This division allowed cheaper prices, and it was possible to control the quality and speed of cleanings," said Martin Javůrek, the owner of Eko-Patrol, a company that cleaned streets in Prague 5, 6 and 13 from 1993 through earlier this year. "[City Hall] created a monopoly, and prices increased. Every tender should have at least two competitors so that the city can choose the winner based on a better price."

The Technical Administration of Roads (TSK) division of City Hall's administration is charged with overseeing city roads. There are a total of 3,815 kilometers of roadway in Prague. The TSK contract with PS covers 2,308 kilometers with responsibility for the remaining, more minor, roads falling on the local municipalities. The TSK is also responsible for 800 of the city's 1,400 hectares of sidewalks. However, a TSK spokesman said they only clean 270 of those aforementioned 800 hectares.

"Prague Services won the tender," TSK spokesman Tomáš Mrázek said. "For TSK, they now provide winter and summer road maintenance. Anyone who met the requirements of the tender could have taken part."

Asked whether he thought PS was doing a satisfactory job in recent weeks, Mrázek said, "TSK fulfilled all its obligations arising from the winter road maintenance plan approved by the City Council. We ensured the drivability of main and side roads and even the navigability of sidewalks that we are supposed to clean according to the current regulations."

There are some who disagree.

"If my firm was cleaning the past 19 years in this manner, then nobody would pay me, and I would get fined," Javůrek said. "It is just unbelievable to not clean up the bus stops."

Karel Březina (Social Democrats, ČSSD) is the newly appointed councilman responsible for transport. He did not respond to requests for comment, though he did concede to the daily Lidové noviny that it is generally better for public tenders to have more than one bidder.

PS also has a contract with City Hall for waste disposal. That 10-year contract expires next year.

The writers can be reached news@praguepost.com

Read this article in Czech with Speakonline.cz