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Monday 16.12.2019 | Name days: Alvīne
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Latvian railway company Pasažieru vilciens hopes to sign train supply contract this year

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvian joint stock company Pasažieru vilciens (PV) might succeed in signing the contract for the supply of electric trains before the end of 2019 even if Procurement Monitoring Bureau (PMB) expands procurement documents with new requirements, said PV board chairman Rodžers Jānis Grigulis.

When asked to comment on Transport Minister Tālis Linkaits’s statements made on 21 May, that PV’s performed train procurement’s results make him consider the company’s liquidation, Grigulis said it is important to maintain a cool head in this situation.

«We have a supply contract that dictates how we function. Train traffic is not impeded; we worked and will continue working successfully. We have announced results and will wait for PMB’s conclusion,» said the head of PV.

He said there is still enough time to sign the contract for the procurement of new trains. «Previous experience shows if there is a complaint, PMB needs to review it within two months. Even if additions or more information is needed, I believe there is enough time to sign the contract,» stresses Grigulis.

The head of PV also says that it is important to keep in mind that offers of the two contenders participating in the procurement are similar. «This demonstrates competition is steep and that both contenders use any methods to win,» he says.

As previously reported, following the decision made by PMB, PV re-evaluated offers from contenders, picking Czech Škoda Vagonka as the winner.

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.

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. After going through the complaint, PMB prohibited PV from signing a contract with Škoda and ordered abolishing results of the procurement committee’s negotiation procedure. PMB also ordered PV to fix the problems uncovered in the work of the procurement committee in twenty days and re-assess all offers submitted by contenders.


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