The European Commission said on Friday that it is launching its first in-depth investigation into the potentially market distortive role of foreign subsidies, exercising its powers under the Foreign Subsidies Regulation, effective from July 12, 2023.
The investigation follows a notification submitted to the Commission by CRRC Qingdao Sifang Locomotive Co., Ltd., a subsidiary of CRRC Corporation, a Chinese state-owned train manufacturer. It concerns a public procurement procedure launched by Bulgaria's Ministry of Transport and Communications, relating to the provision of several electric “push-pull” trains as well as related maintenance and staff training services, the Commission says.
According to the Foreign Subsidies Regulation, companies are obliged to notify their public procurement tenders in the EU when the estimated value of the contract exceeds EUR 250 million, and when the company was granted at least EUR 4 million in foreign financial contributions from at least one third country in the three years prior to notification.
The Commission has 110 working days, until 2 July 2024, to take a final decision.
The Bulgarian Ministry of Transport and Communication public procurement tender is for 20 electric “push-pull” trains, as well as their maintenance over 15 years. The estimated value of the contract is around BGN 1.2 billion.
/DS/
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