Munich–Prague tender relaunched after first failure
Bavaria’s regional rail authority (BEG) and the Czech Ministry of Transport have relaunched the cross-border PSO tender for passenger services between Munich and Prague, after the first tender failed to attract bids.
The second tender was formally launched on 2 February. Authorities say the revised tender terms are intended to address practical obstacles that emerged in the first round.
Why the first tender failed
PSO (Public Service Obligation) is a publicly funded service contract where authorities define and subsidise rail services that are not delivered on a purely commercial basis.
The initial tender struggled to attract bids due to cost risk and delivery constraints, including rolling stock availability and approval for cross-border operation, timetable limitations, and interfaces between the German and Czech networks.
Risk allocation was also a factor. The first procedure left bidders carrying significant exposure to cross-border operational complexity, with limited scope to price or mitigate those risks within the PSO framework.
What has changed in the relaunched tender
In the second attempt, BEG and the Czech Ministry have adjusted elements of the tender design to reduce bidder exposure. The revised tender sets out changes to risk allocation and contractual scope, with clearer rules on cross-border constraints and compensation.
Authorities have also refined assumptions around rolling stock and approvals, aiming to make the package more viable for bidders within the PSO structure. The changes are presented as targeted fixes rather than a full redesign of the service concept.
Who could bid — and who may stay out
The relaunch reopens the field to incumbent operators and neighbouring railways with cross-border experience, as well as private entrants active in long-distance or regional PSO markets. However, barriers remain for operators without access to suitable rolling stock or without established approval pathways in both countries.
Whether the revised tender is sufficient to attract new bidders will depend on how operators assess the remaining cross-border risks relative to the compensation on offer.
What to watch next
The key test will be bid response. Pricing signals, bidder diversity and the timeline to award will indicate whether the revised conditions are enough to trigger commercially viable offers — or whether Munich–Prague becomes a test case for cross-border PSO procurement in Central Europe.
Why it matters: The Munich–Prague relaunch highlights where cross-border PSO procurement breaks down in practice. Adjusting tender design may address immediate obstacles, but the decisive constraint is whether risk allocation, approvals and interfaces are aligned tightly enough to translate policy intent into operable services.