Prague Cancels EUSPA Headquarters Selection

Prague's city council has annulled the selection of construction company PORR for the completion of the Nová Palmovka building, designated to house the European Union Agency for the Space Program (EUSPA). The decision, made today, follows the need to review objections raised during the tender process. EUSPA is expected to relocate to the new headquarters in 2026, moving from its current site in Holešovice, where it has been since 2012. The Nová Palmovka building, which began construction in 2014, was initially intended to accommodate the town hall and a shopping center. However, construction was halted a year later due to disputes, leaving the project stagnant. In 2021, the city council took over the project from Prague 8, initially considering it for the headquarters of the rescue service before ultimately reaching an agreement with EUSPA, which requires more space for its operations. In April, the council awarded the contract to PORR for 2.62 billion crowns, but objections regarding the contractor's compliance and the authenticity of submitted information prompted today's cancellation. Councilor Zdeněk Kovářík acknowledged the situation as a consequence of existing construction laws, emphasizing the need for legislative reform to streamline public procurement processes. EUSPA, which manages various EU space programs, including satellite navigation projects like Galileo and Copernicus, has been operating in Prague since its relocation from Brussels. The ongoing delays in the Nová Palmovka project raise concerns about the agency's future operational capacity.