Stadler has decided to withdraw from Bulgarian rolling stock tenders after the company won several contracts to deliver new electric multiple units and double-decker trains.
Following this decision, the Ministry of Transport announced that the contract for the supply of 35 EMUs will be awarded to Pesa Bydgoszcz.
The Ministry of Transport and Communications received a letter from Stadler which requested the termination of the contract for the supply of 7 double-decker trains financed with funds under the Recovery and Sustainability Plan while withdrawing from the procedure for the delivery of 35 electric multiple units. The contract won by Stadler has a value of BGN 642.5 million (EUR 323 million) and the delivery of the trains should take place within 28 months (more than 2 years).
On April 4, 2024, the Ministry of Transport selected Stadler to deliver 7 double-deck zero-emission trains and the contract was signed on April 26, 2024, which also included the provision of maintenance services for a period of 15 years and training of personnel. According to the tender, the trains would provide a capacity of at least 300 seats. BGN 300.5 million (EUR 151.2 million) was the value of the contract under which Stadler would have to deliver the new vehicles within 26 months.
The initial deadline for the contractor to submit a bank guarantee was 30 working days from receipt of notification of secured financing. After Stadler sent a reasoned request, the deadline was extended by another 52 working days. The deadline for the submission of the bank guarantee expired on July 22, 2024, and so far, it has not been provided, which is another confirmation of the company’s refusal to fulfill the contract awarded to it, the Ministry says.
“During the negotiations between the Bulgarian Ministry of Transport and Stadler, many efforts were made to reach mutually beneficial solutions, within the framework of the law. On the part of Stadler, ultimatum requirements were set, changing even the scope of the contract, which went far beyond the framework of non-essential changes, which in itself is inadmissible under the Public Procurement Act. This is the reason why they were not accepted by the Ministry. The company’s decision to terminate an already concluded supply contract, as well as to withdraw from a procedure – both of huge national and public interest, does not correspond to good commercial relations,” the Ministry concluded.
“Despite everything, we are in a continuous dialogue with the European Commission and will make maximum efforts to implement in full and on time the reform in the railway sector laid down in the Plan for Recovery and Sustainability”, said Georgi Yordanov Gvozdeykov, the Minister of Transport.
Bulgarian rolling stock tenders faced several problems and challenges. In February 2024, the European Commission launched an investigation into the potentially market distortive role of foreign subsidies, aiming at preserving internal market’s integrity. This procedure was announced following a notification submitted to CRRC Qingdao Sifang Locomotive concerning Bulgaria’s public procurement covering 20 push-pull trains and the provision of maintenance services for 15 years. the contract was estimated at BGN 1.2 billion (EUR 610 million).
Ahead of EC’s decision, Talgo has revealed it has submitted its offer for Bulgaria and in April, Bulgaria’s national authorities entered negotiations with Talgo for the supply of these 20 push-pull inter-city trainsets capable to reach speeds of up to 200 km/h. The trains will be adapted for 760 mm high platforms and are entirely accessible with 100% low-floor and provide 390 seats with increased comfort for passengers.
At the same time, Bulgaria signed a contract for the supply of 9 new electric shunting locomotives which are funded by the National Recovery and Resilience Plan. BGN 10.5 million (EUR 5.3 million) is the value of the contract signed with Bulgarian company Express Service and the new vehicles will be delivered until mid-2026.
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