Prague has approved the establishment of an opencard management company, investing 100 million
Today, the Prague Council approved a city trading company that should manage the problematic opencard project in the future. The city will invest 100 million crowns in the company. According to Councilor Jan Vašíček (TOP 09), this is the first step towards Prague getting out of unfavorable contractual relations. The plan is subject to approval by the council.
With the copyright owner, eMoneyServices (EMS), Prague must negotiate an extension of the April contract, for which it is the prosecuted part of the Prague Council. If both parties do not agree, there is a risk of collapse and the more than a billion project will end.
Councilor Vašíček said last week in an interview with ČTK that in a few months the people of Prague would have to return to using paper coupons.
The result of negotiations on the form of further cooperation will be decisive. There is a possibility in the game that Prague will buy all the rights to the opencard system from EMS. But if the negotiations fail, the only way is to give up the opencard and win the whole new system in an open tender.
However, the preparation, competition and deployment of the new system will take up to two years. Until then, they have to secure an EMS – if they don’t, the cards will end and a million passengers will have to pick up paper coupons.
City company Operator
All steps and negotiations should be covered by the city company, which will be called the Operator. The Council hopes that it will unify and simplify the hitherto fragmented operation, management and development of the project. In addition, the establishment of a company is a condition for the entry of potential partners.
Banks and payment institutions have shown interest. The supreme body of the company will be the general meeting, ie the city council. The bodies in the form of the Supervisory Board and the Board of Directors will have three members with a four-year term.
The opencard has already cost Prague over 1.2 billion crowns. It serves mainly as a tram, at the same time it is possible to pay for parking or get discounts, for example when entering the zoo. The problematic project dates back to the time of former mayor Pavel Bémy. However, part of the current and past council, including Mayor Tomáš Hudeček, is being prosecuted because of him.