CD complains that terms of the tenders, called by the Transport Ministry, make it impossible for them to win the fight with the private companies, HN says.

The price is the second most important criterion in the tenders. CD says private investors offering state-of-the art carriages will win. It is the private companies than can come up with such offers despite CD offering lower cost bids.

"Since the very beginning we will thus be losing nine points in the assessment of our bid, with no practical chance to offset it with a cheaper offer," HN quotes a CD document.

The state has invited tenders for regional lines Pardubice (East Bohemia) - Liberec (North Bohemia) and Plzen (West Bohemia) - Most (North Bohemia).

A decision on the winner will be made by the end of January. The bidders are CD, Viamont and Connex Ceska Zeleznicni.

CD has modernised trains dating from the mid-1990s. It is bidding to run the railway track to Most for 8.3 million Czech Kroner, while its rival Viamont is demanding 53.7 million Czech Kroner.

The line to Liberec would be operated by CD for 36.8 million Czech Kroner, while Viamont and Connex offered prices twice as high.

The ministry refused to comment on the conditions set out in tenders, the daily says. The tenders have not yet been closed, said ministry spokeswoman Marcela Zizkova, adding that she is not allowed to provide any information. Transport Minister Milan Simonovsky said tenders will be closed before the end of the month, Zizkova added.