Ministry of Transport replaces failed train order with new electric trains
Following another failure in the delivery of 20 “push pull” trains funded by the Recovery Plan, the Ministry of Transport has decided to replace them with single-deck electric multiple units. This decision was announced in a public tender last week, with an estimated value exceeding 1.2 billion BGN excluding VAT, and a delivery deadline of 24 months.
Considering the shortened delivery time (previously 33 months), there is a high probability that this order by the ministry may not be fulfilled completely. In less than a year, will there be a change in plans?
Issues with Procurement of Rolling Stock
The department, headed by Georgi Gvozdeykov, has initiated 9 procedures related to the procurement of rolling stock, but only one has been successful. Even the procedures that have reached the selection of a contractor and signing of a contract are now in question. Last week, for example, it became clear that Stadler Polska Sp. Z.o.o. is withdrawing from the procedure for the delivery of the 35 motor trains, and furthermore, they are requesting the termination of the contract signed in April for the delivery of the 7 double-decker trains. Thus, in practice, three out of the four planned procedures for new rolling stock are in jeopardy.
Delivery of Locomotives
Implementing the procedure for delivering locomotives posed no issues, except for the fact that only half of the intended 18 locomotives were actually commissioned, with only 9 being delivered. The replacement of “push-pull” trains became a topic of discussion at the end of June when the Ministry of Transport started talks with the European Commission about the possibility of replacing the planned 20 “push-pull” trains with a different type of rolling stock. The news was announced in an interview by the minister Georgi Gvozdeykov, although at that time he did not disclose what type of trains they were considering. Now it is clear that the “push-pull” trains in question will be replaced with a different type.
New Electric Trains Introduced in Bulgaria
Bulgaria has recently replaced its old trains with new single-deck electric motor trains, with a capacity of at least 300 seats and a speed of up to 160 km/h. This move by the Ministry effectively doubles the number of trains, as part of a separate procedure for the acquisition of 35 motor trains. The only difference is that these trains have a capacity of 200 seats each.
The delivery time for these new trains has been significantly shortened compared to previous procedures. While it used to take 33 months, now it is only 24 months, due to Bulgaria’s requirement to absorb the funds by the end of August 2026. Furthermore,
Procurement Order for New Trains
The procurement order has been opened for new trains. Previous procedures involved direct negotiations with companies. In the new procedure, similar to the previous ones, a 15-year period of maintenance and warranty service is provided, as well as staff training. The total estimated value of the order is over 1.2 billion BGN without VAT. It includes the delivery of 20 locomotive trains and their warranty maintenance for no less than 36 months, for which 660 million BGN without VAT is allocated. Planned maintenance is budgeted at 204 million BGN without VAT, and unplanned maintenance at 33 million BGN without VAT. Additionally, 66 million BGN without VAT is allocated for spare parts.
Extraordinary Repairs: VAT Excluded
Extraordinary repairs are planned for the delivery of an additional 5 trains, with a budget of over 240.7 million BGN excluding VAT. Any participant who offers a price exceeding the total estimated value indicated by the contracting authority will be disqualified from the procedure, as stated in the documentation.
Change in Train Type
The change in train type was decided after the direct negotiation procedure derailed in mid-April. It became clear that the procedure had been terminated, leading to the need for a new approach in selecting the trains for the project.
Chronology of Orders and Limited Success
One of the companies did not extend the deadline of its offer due to an investigation by the European Commission, while the evaluating committee found several irregularities in the technical parameters and an excessively long delivery time for the other. Despite his promises as Minister of Transport, Gvozdeykov has only managed to make one out of the four planned orders under the Public Procurement Act “almost” successful so far.
The Transformation of Tana in the Near Future
In the near future, Tana was part of the civil government close to GERB, and was even included in GERB’s political project cabinet. She justified this metamorphosis precisely with the desire to finish her work. In fact, sitting in the ministerial chair, Tana found procedures that had already been started with an 8-month delay by her predecessor, Hristo Alexiev. These procedures, however, involved the construction of repair bases for trains, for which there was no secured funding. This was one of the reasons Tana decided to stop the orders at the end of June 2023, actually jeopardizing the entire project.
Success of the Ministry in Procurement of Trains and Locomotives
Since then, the ministry has successfully initiated a total of 9 orders related solely to rolling stock. The first attempt was made in September 2023, when the department issued four tenders for the delivery of trains and locomotives. Their fate varied, with only the delivery procedure of 18 locomotives proving to be trouble-free. Unlike the other orders, it was not appealed by companies. It was divided into two separate positions, and by the end of 2023, the ministry selected the Bulgarian company “Express Service” to deliver the locomotives.
Electric Locomotive Contract Update
A recent contract for the delivery of 9 electric maneuvering locomotives has been completed successfully. The total value of the contract was just over 10.5 million BGN, excluding VAT. The first locomotive produced under this contract is expected to be accepted by the relevant department very soon.
Delivery of Partially Electrified Depots Locomotives
Unfortunately, the second part of the contract, which involved the delivery of 9 locomotives for partially electrified depots, has been terminated. Seven months later, there has been no update from the department regarding these locomotives, and the contract has not been re-announced. This has led to uncertainty regarding the fulfillment of this specific delivery.
While the delivery of the 20 “push-pull” trains and the 35 electric locomotives faced some challenges, the completion of the contract for the 9 electric maneuvering locomotives is a positive development for the transportation sector.
The Controversy Surrounding the Procurement of Trains
In 2023, a procurement process was initiated for the purchase of 35 new trains, including ski trains and 7 double-decker trains. However, the process was marred by challenges from major international companies, resulting in delays and changes to the terms.
The first tender for the delivery of the trains began in September 2023. A month later, it was halted due to a complaint from “Skoda Transportation,” and in November, the Competition Protection Commission declared it unlawful. The Ministry did not appeal the decision.
As a result, a new order with revised requirements was launched in January 2024. In March, the tender was once again challenged, this time by the French company.
Alstom’s Failed Bid for Public Transport Contract
Alstom, a leading international company in the field of public transportation, recently faced setbacks in its bid for a major contract. Despite its strong reputation and track record, the Public Procurement Agency did not find Alstom’s offer satisfactory. In April, the tender was cancelled due to the fact that the offers from two other participating companies – Polish Pesa and Czech Skoda Transportation – did not meet the requirements of the contracting authority.
In May of this year, the procurement process was restarted, with the agency seeking direct negotiations with the companies involved. Four international companies were invited to participate, and in early July, “Stadler” was selected as the contractor. However, Stadler later withdrew from the process, and will be replaced by the second-ranked bidder, “Pesa”. The situation is still unresolved, with the final decision pending.
Challenges in the Delivery of Double-Decker Trains
There is uncertainty surrounding the signing of a contract for the delivery of seven double-decker trains. The delivery procedures for these trains have also faced obstacles. The first train was launched in September 2023, but a month later it was temporarily halted due to a complaint from “Stadler.” However, the Commission for Protection of Competition dismissed the complaint and the delivery continued. By January 2024, it became clear that the tender had been terminated as the sole offer submitted did not meet the requirements of the contracting authority. Only the Consortium 7 DDEMU, which included the Chinese CRRC Zhuzhou Locomotive CO, showed interest at that point. Therefore, a new bidding process started in February, but the outcome is still uncertain.
Unexpected turn of events in the procurement process
In early April, it became clear that only “Shadler” had shown interest and submitted an offer. The company was selected as the contractor, and by the end of the month, a contract was signed with them. However, unexpectedly, a few days later, the ministry announced that “Shadler” was withdrawing from the order and requesting the termination of the signed contract.
Even if a new order were to be initiated, the delivery deadline would be too short due to the requirements for funds absorption by August 2026. Therefore, it is highly likely that Bulgaria will not acquire double-decker trains. The assessment
Update on Train Orders
The orders for the 7 double-decker trains and the 35 motorized trains placed with “Shadler” have encountered difficulties and their completion is now uncertain. The planned 20 push-pull trains have been replaced with a different type, and the process for them has just begun. The only order that has seen some success is the delivery of the 9 locomotives.
