Transport Ministry to put brakes on dozens of construction projects

The boom in transport construction is over, at least for the near future: that is the message new Transport Minister Vít Bárta sent on Tuesday after meeting with representatives of construction companies. Mr Bárta, like fellow ministers, is under pressure to introduce major cost-cutting measures in line with the government’s plan to slash the planned deficit in 2011 by more than 58 billion crowns. As a result, the Transport Ministry reportedly wants to freeze up to around 50 construction projects, including the completion of part of the D3 highway in South Bohemia.

Public Affairs Minister Vít Bárta led a highly successful company prior to entering politics; now along with fellow ministers he will face perhaps his toughest task yet: slashing expenditures at the Transport Ministry. On Tuesday the minister met with construction company representatives to discuss his plan to freeze up to 51 construction projects, including the completion of 30 kilometers of the D3 highway near České Budějovice, or highway near Karlovy Vary. Projects could be put on hold, presumably for one or two years, and Minister Bárta made clear that only projects where construction companies come forward with additional cuts will get the green light.

“I asked them for help in looking for areas where costs could be cut in all kinds of construction projects. Only those that will be successful will be able to go ahead.”

Vít Bárta

Not surprisingly, the plan has been greeted by a fair measure of criticism as well as opposition from construction companies. For one, a construction freeze will cost hundreds of jobs; two, sites where construction is already underway will have to be properly insulated to avoid damage to materials and work already completed. And third – arguably the most serious counter-argument – construction representatives say Mr Bárta’s proposal clashes with current legislation. Miloslav Mašek, the head of the Association of Building Entrepreneurs of the Czech Republic, explained how:

“If a company wins a public tender on a construction project by already offering the most affordable deal, it’s not possible for the firm to come forward with additional measures after the fact. That would see the other firms that took part in the original tender immediately put forward protests. The idea is clearly at odds with the law on public tenders.”

But ‘opposition’ is not a word the new Transport Minister will want to hear, one reason on Tuesday Mr Bárta asked firms themselves to think out-of-the-box and come forward with their own proposals where money could be saved. Both sides agreed to continue meeting on a regular basis until a compromise solution is reached. Meanwhile, an official list of the 50 or so projects to be frozen will be released by the Transport Ministry next week - on Friday the 13th.