Two U.S. companies compete to deliver locomotives to Moldovan Railways

Two U.S. companies have been selected in the final phase of the competition for the delivery of 12-15 diesel freight locomotives to Moldovan Railways (CFM). Thus, the European Bank for Reconstruction and Development analyses the offers submitted by GE Transportation and Progress Rail. Seven companies submitted offers initially. The tender includes two phases consisting of the technical offer, already assessed, and the price offer which is ongoing.
„We are in the final phase of the tendering procedure for the procurement of locomotives, a project financed by the European Bank for Reconstruction and Development. Although there have been 7 bidders, the only two companies left in the competition are GE and Progress Rail. The tender has two phases, the technical assessment and the price offer. The first one has been completed, while the second phase is ongoing. We will soon announce the winner”, declared Iurii Topala, General Manager of Moldovan Railways during the Rolling Stock Conference organised by Club Feroviar with the support of the Romanian Railway Industry Association on 25 and 26 April.
The tender for the procurement of locomotives and modernisation of Basarabeasca depot facilities was announced at the end of 2016. According to the documentation, the contract has a duration of 18 months plus warranty.
Beside EBRD, the project is financed by the European Investment Bank through the Neighbourhood Investment Facility (NIF) within the CFM Restructuring project for the improvement of railway infrastructure and rolling stock to allow the company to make their energy consumption efficient and to improve the performance of operations.
According to EBRD, the company launched a modernisation programme worth EUR 116,75 million. In June 2016, the company and EBRD agreed on the co-financing contract with the total budget of EUR 105 million. In the same period, the Ministry of Finance announced the partial warranty on the reimbursement of EBRD loan to CFM. EBRD allocated a EUR 52.5 million financing, the same value was also covered by EIB, while through NIF, the European Union co-financed the procurement of locomotives with EUR 5 million.

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