site.btaPoland's PESA to Supply 35 Electric Multiple Units to Bulgarian State Railways after Stadler's Withdrawal

Poland's Pojazdy Szynowe PESA Bydgoszcz SA will be contracted to supply 35 electric multiple units (EMUs) under the Public Procurement Act, the Transport Ministry said on Wednesday. Stadler Polska Sp. Z.o.o., the top-ranked out of four bidders withdrew from the procedure and asked for the termination of a contract for the supply of seven double-decker trains financed under the Recovery and Resilience Plan.

Stadler failed to provide a bank guarantee by the July 22 deadline, which is another sign that it is not going to fulfil the contract for the double-decker trains.

Transport Minister Georgi Gvozdeykov said: "During the negotiations with Stadler, many efforts were made to reach mutually beneficial solutions within the framework of the law. Stadler set ultimatums, changing even the scope of the contract and going far beyond non-substantive amendments, which is unacceptable under the Public Procurement Act. This is the reason why the proposed amendments were not accepted by the Ministry. The company's decision to terminate a concluded supply contract and to withdraw from a procedure, both of great national and public interest, is not in keeping with good commercial relations. Nevertheless, we are in continuous dialogue with the European Commission and will do our best to implement in full and on time the reform of the rail sector set out in the Recovery and Resilience Plan."

The tender for the procurement of 35 EMUs was opened early in 2024, but two participants failed to meet the requirements. In view of the complexity of the project for modernization of the rolling stock, the Transport Ministry decided to switch to a procedure of direct negotiations without prior announcement. Four bids were submitted by the May 21 deadline by PESA, Alstom, Škoda and Stadler Polska, and the latter was selected to deliver the EMUs.