Prague City Hall and the construction firm Metrostav have failed to resolve the controversy over the Blanka tunnel complex under construction in the Czech capital. Metrostav recently warned it would cease further construction work on December 7 over unpaid bills. City Hall said it had stopped further payments after having found that the contract on building work was legally invalid. Metrostav claims it is owed 2.1 billion crowns and is handing the matter over to an arbitration court. Prague City Hall had hoped to reach an out-of–court settlement in order not to jeopardize one of the city’s largest building projects.
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