The complaints of the joint-stock company Riga Railway factory (RRF) and the Swiss company Stadler Bussnang AG about 144 million lats worth new train procurement tender, which was organised by AS Pasažieru vilciens (PV), have been declared as unjustified; consequently, the Procurement Surveillance Bureau (PSB) has allowed to continue the mentioned procurement procedure.

The Bureau deemed RRF complaint as unjustified. In the complaint, RRF contested the decision adopted by PV on September 13 with which PV recognized RRF tender application as compliant with the qualification requirements stipulated in the candidate selection statute, and qualified RRF for the next round together with the company Bombardier, reports LETA.

In the contested decision, PV determined that «in case of issuing contractual rights, RRF and Bombardier jointly assumes responsibility and the obligation to fulfil the procurement contract, with Bombardier taking responsibility and carrying out any of the procurement contract obligations if RRF fails to meet them».

With this decision such applicants as Construcciones y Auxiliar de Ferrocarriles and Stadler Bussnag AG were also qualified for the second round.

However, RRF called for PV to acknowledge the decision as unlawful and stop the train procurement procedure.

The Procurement Surveillance Bureau also dismissed Stadler Bussnang AG complaint on PV decision concerning the results of the tender applicant selection, due to which RRF was invited to participate in the second round.

According to the PSB data, the Bureau enabled the public service provider PV to continue the procurement procedure at a closed tender The Agreement on the Procurement of New Electric and Diesel Trains.

Both RRF and Stadler Bussnang AG may appeal the PSB decision within a month’s time at the Administrative District Court.

The Spanish company Construcciones y Auxiliar de Ferrocarriles SA, RRF in cooperation with Bombardier and Stadler applied to the first round of the tender for new electric and diesel trains, which was organised by PV.

All three candidates were qualified for the second round of the tender.

The first new trains could start operating in late 2012. The procurement foresees a purchase of 34 new electric trains and 7 diesel trains by 2015. The successful candidate will also have to provide the maintenance of the new trains.

Currently, for passenger transport an old and technically-depreciated rolling stock is being used, whose average operating time exceeds 25 years. Moreover, the number of trains owned by Pasažieru vilciens is insufficient for providing fast and efficient passenger transport services.

The total procurement costs are planned at the extent of 144 million lats, of which the co-financing of the European Union Cohesion Fund will be approximately 100 million lats.