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Friday 17.01.2020 | Name days: Tenis, Dravis
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Latvian ministry proposes using EU funding to partially finance purchase of new trains

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvia’s Transport Ministry has proposed diverting EU funding of EUR 49 million from the Skanste tramway project to the procurement of new trains for railway company Pasažieru vilciens, as confirmed by the ministry’s representative Iveta Kancēna.

Transport Ministry has commenced discussions with Finance Ministry about the possibility of diverting EU funding to Liepaja and Daugavpils municipalities’ tramway line infrastructure development, as well as procurement of new passenger trains. After going through project concepts submitted in Daugavpils and Liepaja, Transport Ministry prepared a proposal to divert an additional amount of EUR 10 million in addition to EU Cohesion Fund’s financing to develop tramway infrastructure.

In order to maintain progress for Transport Ministry’s proposal and commence talks with European Commission, it is first necessary to secure the government’s conceptual support for specific actions. Transport Ministry plans to inform Cabinet of Ministers with a report on progress.

Transport Ministry considers procurement of new trains a priority, as the project is almost ready and it is expected to contribute to goals listed in EU fund project Growth and Employment. The ministry’s initiated proposal provides for diverting EUR 49 million from available EU funding.

As it is known, Pasažieru vilciens, considering PMB’s opinion and reviewed procurement participants’ offers a third time, picked Škoda as the winner at the end of May. Following this, Talgo submitted a complaint.

Four contenders competed with one another in Pasažieru vilciens’ procurement for 32 new electric trains and maintenance equipment – Škoda, Talgo, Polish subsidiary of Swiss Stadler, and Spanish Construcciones y Auxiliar de Ferrocarriles (CAF).

Initially, Talgo was picked the winner. Its offered price was EUR 225.303 million. However, two other contenders – Škoda and CAF – submitted a complaint to PMB.

After reviewing complaints, PMB prohibited Pasažieru vilciens from signing a contract with Talgo. After reviewing offers again, Pasažieru vilciens picked Škoda as the winner. This company’s offered price was EUR 241.889 million.

The winner in the tender was changed because Pasažieru vilciens took into account PMB’s recommendations in regards to electricity price. After looking at long-term costs, Škoda’s offer was declared the most economical. Talgo’s price was lower, but train maintenance costs over a 35-year-cycle were lower in Škoda’s offer.

Talgo then submitted a complaint to PMB over the picked winner in the talks procedure. After reviewing the complaint, the bureau prohibited Pasažieru vilciens from signing a contract with Škoda and ordered the company to cancel procurement committee’s decision on results of the procedure. PMB also ordered Pasažieru vilciens to prevent the violations uncovered for the procurement committee by re-assessing submitted offers.

After re-assessing offers, Pasažieru vilciens once again picked Škoda as the winner at the end of May.


Leave a reply to LH

  1. LH says:

    Why would they receive a dime after all the corruption? Lessons obviously not learned.

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