Latvia approves EMU procurement

Latvian government has approved Pasazieru Vilciens’ procurement of new trains from Skoda Vagonka. The government has thus approved long-term liabilities to the national budget for a total of EUR 255.89 million. The project includes the acquisition of 32 electric trains.
At the beginning of this year, the operator has announced it will purchase the trains from Škoda Vagonka under an agreement valuated at EUR 241.88 million, including the delivery of spare parts and equipment.
The tender was launch in 2015, and Patentes Talgo, Stadler Poland, CAF and Škoda Vagonka entered in the second stage of the procurement process.
Initially, the operator selected Talgo as the preferred bidder, with a EUR 225.3 million offer, but the Procurement Monitoring Bureau blocked the deal after CAF and Škoda Vagonka filed objections. According to Jānis Grigulis, the CEO of Pasazieru Vilciens, the preferred selected bidder was changed because Pasazieru Vilciens took notice of Procurement Monitoring Bureau’s advice to take into account the electricity price of the trains. The new analysis highlighted that Skoda Vagonka’s offer was more economical. Although Talgo’s price offer was lower, the maintenance costs offered by Skoda Vagonka for the trains’ 35-year life-cycle were much lower, which meant lower overall costs. During the reassessment, the bidders were not allowed to change their offer.

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