Prague council waste firm favorite for lucrative rubbish contract

Prague city council’s own rubbish firm Pražské služby in consortium that appears in pole position to win long-term rubbish collection tender

A consortium including Prague City Council’s own municipal waste service company, Pražské služby, appears to be the frontrunner to land a council contract for transporting the capital’s rubbish after offers to do the work were opened.

Pražské služby, which teamed up with the companies Pražská odpadová and AVE CZ odpadové hospodářství, came in with the lowest offer of Kč 16.396 billion to carry out the contract from 2012 until the end of 2021.

Other bidders came in slightly higher, with a 14-strong consortium headed by Marius Pedersen offering to carry out the contract for Kč 16.932 billion and a six-company offer piloted by the A.S.A company seeking Kč 16.820 billion for the work.

The main criteria for awarding the tender was the cheapest bid to carry out the work.

AVE is part of the Austrian utilities group Energie AG with activities across Central Europe and claims third place on the Czech market for rubbish collection and treatment.

Czech investment group Natland took an 18.85 percent stake in the Prague rubbish company, Pražské služby, in June, becoming the largest minority shareholder, holding its shares through the Cyprus-based company Soranus. Prague City Council maintains an almost 77 percent shareholding in Pražské služby.