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Pozemky pod kolejemi na hlavním nádraží v Praze. Foto: Jan Sůra / Zdopravy.cz

The Czech Railways sent the Railway Administration a bill of $1 billion for the lease of the land. reject it

The Czech railway company has already paid VAT on invoices. According to them, the lease is based on the planned sale of the land.

An unexpected trade dispute arose between the two largest state-run railway organizations. This week, the Czech railway company sent the railway department to pay a bill of 3.2 billion kroner. This was a lease since 2017 for the use of the territory of the Czech Railways, on which the dormitories of the Railway Administration are located. The Czech Railways is negotiating its sale to the Railway Administration.

“This is a unilateral step by step D. The bills will not be paid and they are being challenged by ČD. The railway administration does not have the funds for paying the said bills,Said Radka Pistoriosova, spokeswoman for the Railway Administration.

According to Czech Railways spokesperson, Petr Šťáhlavský, this is compensation for the use of Czech Railways land by the railway administration. “The settlement of this claim was the subject of negotiations between the two parties in preparation for the sale of land in the dormitories of the Railway Administration. As part of this process, ČD and SŽ jointly commissioned an indicative valuation and quantification methodology for both the value of the land and the amount of compensation for its use up to the time of sale.” Štáhlavský said. The Czech railway company has already paid VAT on the bill, that is, it paid about half a billion kroner.

Czech Railways sent the bill without the knowledge of the Ministry of Transport, only the supervisory board was informed.

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The European Commission is investigating the $1 billion transfer

The transfer of land ownership to the railway administration was talked about several years ago. Its area is about forty million square meters under the tracks. The Ministry of Transport has already asked the European Commission to consult on whether the deal would not be considered illegal state aid. The sale should bring billions of crowns to the Czech railway company.

These, for example, land under the rails or near railway stations in about a thousand districts. The deal had been in preparation for several years, and engineering blueprints had to be created. The entire deal is a remnant of errors in the local railway division, when Czech Railways was left with a number of assets that were to fall to the Rail Infrastructure Administration (now the Railways Administration).

Since the beginning of the considerations for this transfer, the amounts for the group of plots of land have varied widely. A few years ago, the Czech railways spoke of 20 billion, and the railway administration spoke of six.

This is not the first transfer of property of the Czech railway company under the management of the railways. In 2008, ČD received 12 billion kroner for part of the infrastructure, and later also the so-called live transport route, that is, dispatchers and dispatchers. In 2016, Czech Railways sold most of its station buildings. The Railways Department also buys part of the ČD-Telematika plant in which České dráhy holds a majority stake.

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Czech Railways

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Transfer of land ownership

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Railway Administration

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