Center for Economic and Market Analysis: Change in the concept of mobile furniture The city of Prague brings many risks to the city
12.10.2021 10:02 | Analysis
Decision of the representatives of the capital The City of Prague will not extend the contracting company JCDecaux foreshadowed a fundamental change in the concept of Prague furniture management.
However, the change of direction towards its own furniture management brings many risks and unforeseen impacts for the city, which were analyzed by the Center for Economic and Market Analysis (CETA).
survey
Is it okay to speculate on the removal of President Zeman for health reasons?
voted: 7169 people
At first glance, the city’s decision may seem prudent – if the city gets rid of the middleman, it can reduce the cost of managing bus shelters, benches, public toilets, etc. and better manage the city’s advertising space. However, a more detailed analysis will reveal many problems and risks. “There are many reasons why the city should leave the management of the furniture to a specialized company, regardless of who has operated the furniture so far. Hl. The city of Prague does not have the know-how, software, hardware or an overview of current technologies – all these elements will have to be outsourced expensively, “says Jakub Žofčák, an analyst at the Center for Economic and Market Analysis (CETA). “In addition, private companies, by their nature, make more flexible decisions than city officials and representatives. The city thus sews a whip in the form of the risk of rising costs, inefficient operation and maintenance, or local traffic restrictions. Not to mention the danger of abusing this situation by politicians who can promote their interests at the expense of the city’s economic interests and, for example, promote themselves in city advertising spaces, “by Jakub Žofčák.
According to the analysis, not only the general tendency of the city to manage furniture along its axis is problematic, but also its specific procedure in recent months and years in the replacement of current furniture. As the director of CETA’s research, Aleš Rod, mentions: “The common denominator of all the problems with the replacement of Prague furniture is the sharply rising costs and very long delays in the absolutely basic actions that the city must do. The replacement of some elements of furniture has already been planned for this year, and the only thing that has been agreed so far (and not binding, as follows from publicly available information) is the purchase of shelters, railings and waste bins. “It is the growth of the price level on a weekly basis that represents a major risk. “It is almost certain that the schedule will not be adhered to, and therefore the agreed price with selected companies is not fixed, according to available information, costs will continue to rise, especially due to the huge worldwide increase in prices of materials from which stops will be assembled. Already, the costs are double the plan, “Rod said.
The ongoing analysis of the benefits and costs of the project has so far been based on big questions. “Not only is this solution very uneconomical, as a result it does not necessarily mean an increase in the comfort of Praguers for whom it is intended. The main source of income – urban advertising space – has not been resolved either. The division of orders between several suppliers in a country such as the Czech Republic, let’s face it, the speed of implementation will not help twice, ”adds Rod.
A managerial summary of the study is available HERE.
The full text of the study is freely available HERE.
Are you a politician? Publish everything you want without editing. Register HERE.
Are you a reader and want to communicate with your representatives? Register HERE.
author: PV