Pesa encountered problems in Romania. “The contracts are valid and still in force”

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Contracts of the Pesa Bydgoszcz company in Romania

In December 2023, Pesa concluded a contract for the supply of 20 Inter-Regio class electric multiple units to Romanian Railways, with an option for an additional nine trains. Then, in January 2024, the company concluded a contract to supply 62 electric multiple units (regional trains) for Romanian Railways.

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Initially, eight manufacturers of rail vehicles expressed interest in the tender, but due to the very high costs of financing the performance bond, apart from Pesa, the only competitor was Alstom. The French company was excluded from the tender for regional vehicles due to submitting an offer that does not meet the requirements of the ordering party. The court of first and second instance confirmed this exclusion. In the procedure for Inter Regio vehicles, the contracting authority evaluated two offers and Pesa received the higher score. Alstom decided to appeal against these decisions to the National Chamber of Appeal (KIO – editor’s note), both appeals were rejected, and the ordering party decided to sign contracts with Pesa – explains Jan Bończyk.

The director explained that law Romania ensures that the ordering party – after the protest is rejected by the National Chamber of Appeal – may sign a contract with the selected contractor. There is no need to wait for another participant to appeal. Based on this law, Romanian Railways signed an agreement with Pesa.

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The court orders Pesa’s offer to be reconsidered

– Despite these circumstances, Alstom decided to continue fighting in court for these orders. Alstom lost in the tender for Inter Regio vehicles at KIO, the court of second instance ordered the ordering party to re-evaluate Pesa’s offer in respect of only one of the many points questioned by Alstom – calculation of maintenance costs. Pesa sent explanations to the ordering party on April 3 and is waiting for a reassessment of the justification for maintenance costs. In this procedure, Alstom’s offer, which took second place in the tender, is still valid, but until the decision is made, the contract with PESA is valid and in force – explains the director.

In the order for Regio vehicles, both the National Chamber of Appeal and the courts of second instance confirmed that Alstom’s offer was effectively excluded. Even though the French manufacturer has no chance of obtaining this order, it is trying to have the proceedings invalidated. Alstom lost in the KIO, the court of the 2nd Instance, as in the case of the proceedings for Inter Regio vehicles, ordered a re-evaluation of the offers, but there is no justification for the court’s judgment yet, so we do not know to what extent. In these proceedings the only offer is the one submitted by Pesa, and the contract with Pesa is valid and binding – emphasizes Jan Bończyk.

He also said that after delivering the justification for the judgment of the second instance court, it will be possible for the Office for Railway Reform (ARF) to take further actions and re-assess Pesa’s offer.

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Are Pesa contracts at risk?

– As part of the reassessment of the offer, ARF will probably ask Pesa to provide detailed explanations regarding the issues indicated in the justification of the judgment. While the offer is re-evaluated, the execution of the signed contract for the supply of 62 EMUs may be suspended. Currently, there are no grounds to terminate or invalidate the contract. After reassessing Pesa’s offer, it will become clear whether it will be re-selected or the tender procedure will be invalidated – concludes the director.

Earlier, the Romanian website economedia.ro reported, based on its own findings, that the contract signed with Pesa for 62 short-distance trains may be canceledafter the Court of Appeal in Bucharest allowed Alstom’s appeal.

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