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Monday 09.12.2019 | Name days: Sarmīte, Tabita
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Latvia re-reviews train procurement and declares Škoda Vagonka the winner

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUAfter reviewing the train procurement for a third time, Latvian railway company Pasažieru vilciens (PV) declared Czech Škoda Vagonka the winner, as confirmed by the company.

Škoda Vagonka offers supplying 32 electric trains for EUR 241.88 million. The contract covers the trains, procurement of necessary maintenance equipment, supply of spare parts for the first five years, as well as personnel training.

«In accordance with guidelines from the Procurement Monitoring Bureau (PMB) and attracting technical and legal experts, we have carefully re-assessed contenders’ offers. Active competition among contenders for the rights to supply trains demonstrates that the process is open and provides equal treatment of all contenders,» comments PV board chairman Rodžers Jānis Grigulis.

As part of the procurement project it is planned that PV will be supplied with 32 new electric trains gradually by 2023.

BNN had previously reported that following a complaint submitted by Spanish Talgo, PMB prohibited the signing of the train supply contract with Škoda Vagonka.

The Spanish company doubted the Czech company’s electricity consumption indexes and maintenance costs.

Four contenders – Talgo, Swiss Stadler’s Polish subsidiary, Spanish Construcciones y Auxiliar de Ferrocarriles and Czech Škoda Vagonka – competed for the rights to supply PV with 32 new electric trains. Initially PV declared Talgo the winner. The company’s offer was EUR 225.3 million. However, two other contenders – Škoda Vagonka and CAF – submitted complaints to PMB over the talks procedure.

After reviewing complaints, PMB decided to block the signing of the contract with Talgo. After reviewing offers again, PV decided to procure trains from Škoda Vagonka, whose offered price was EUR 242 million.

The company’s management explained that the change of the winner was performed because PV took into account recommendations from PMB regarding the need to assess the price of electricity. After reviewing train costs over a long period of time, PV concluded that the offer from Škoda Vagonka is more economical. Talgo’s price was cheaper, but Škoda Vagonka’s proposed train maintenance costs for 35 year cycle were lower. This also meant lower total costs.

Talgo then submitted a complaint to PMB on the new winner. Another complaint was submitted to the Administrative Court of Justice but was rejected in the end.


Leave a reply to Zerry

  1. Zerry says:

    So it goes again, like with energy related tenders. One more and one more round until the wanted winner can be somehow legally chosen.

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