Bulgaria's Ministry of Transport and Communications said in a press release on Saturday that it has so far complied with all legal requirements for a negotiated procedure without prior publication relating to the public procurement of electric "push-pull" trains, maintenance and staff training services. "All further steps will reckon with the results of the in-depth investigation and the decision of the European Commission," the Ministry said.
The press release comes a day after the European Commission announced that it had launched its first in-depth investigation into the potentially market distortive role of foreign subsidies, exercising its powers under the Foreign Subsidies Regulation. The investigation followed a notification submitted to the Commission by Chinese state-owned rolling stock manufacturer CRRC Qingdao Sifang Locomotive Co., Ltd. concerning the public procurement procedure initiated by the Bulgarian Ministry.
The Commission considered that there are sufficient indications that this company has been granted a foreign subsidy that distorts the internal market. The Commission had to assess whether the foreign financial contribution constitutes a subsidy that directly or indirectly confers a selective benefit to the company; and whether this allows the company to submit an unduly advantageous tender.
The Commission has until July 2, 2024, to take a final decision. It may accept commitments proposed by the company if they fully and effectively remedy the distortion, prohibit the award of the contract, or issue a no-objection decision.
Bulgaria seeks to procure 20 electric "push-pull" trains and their maintenance over 15 years. The estimated value of the contract is around BGN 1,200,483,000 before VAT (EUR 610 million).
The Ministry said that both bidders for the contract have submitted the required notification of foreign financial aid or declaration of absence of foreign financial aid, as applicable. The Ministry has submitted these documents to the European Commission for consideration and opinion.
According to the press release, the Commission's in-depth investigation is conducted on the basis of documents sent by the Ministry of Transport and Communications.
/LG/
news.modal.text
