Ukraine to acquire 100 coaches

passenger coachesUkrzaliznytsia announced a negotiation procedure for the purchase of 100 passenger coaches and the implementation of the relevant budget programme for the renewal of passenger rolling stock.

The Ukraine Railways has received a budget of UAH 4 billion (EUR 122.4 million), of which the largest portion worth UAH 3 billion (EUR 91.8 million) will be used to renew company’s passenger train fleet.

According to the Acting Chairman of the Management Board of Ukrainian Railways, Ivan Yuryk, a meeting of the tender committee took place on June 14 and the intention to sign a contract with the Kryukiv Railway Car Building Works (KVBZ), which was announced on the ProZorro, the governmental online public procurement platform, successfully passed all qualification procedures.

If no appeals will be submitted by the other participants, the contract will be soon signed.

The terms of the contract stipulate that the first batch of the passenger coaches will be delivered by the end of the year and will immediately put into commercial operation.

The remaining coaches will be delivered within 12 months and by 2022 all the new rolling stock will enter services.

In February, Ukrzaliznytsia announced a tender for the purchase of 100 cars and invited eight leading manufacturers from around the world to participate. However, only one of them was able to meet the technical requirements and delivery time within 12 months. Therefore, the tender procedure did not take place.

To make the most efficient use of public funds the company received relevant expert opinions and after an analysis has entered the negotiation procedure. This is provided by the law on public procurement and in the case of technical reasons the competition is limited.  According to the results of the procedure, the companies agreed on the contract price of the passenger car fleet, to be delivered in 2021 and 2022 and is indexed by only 6% to the price of the previous tender delivery in 2018. After exhausting negotiations, the manufacturer found an opportunity to satisfy Ukrzaliznytsia’s requirements as much as possible, taking into account, among other things, the state’s ambitious plans to continue investing in the renewal of passenger rolling stock.

To renew its train fleet and increase localisation, Ukrzaliznytsia has recently signed an agreement with Stadler  under which if the Swiss manufacturer will winn the future train tenders will localize the train production in Ukraine.

In addition, in May, Ukraine and France signed an agreement for the delivery of 130 electric freight locomotives manufactured by Alstom.

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