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Hungary,Russian Federation : BKV inks metro contract worth EUR 219.2 mn

Publish Date : 08-Aug-2015

Budapest public transport company BKV and Russias Metrowagonmash have entered into a contract to modernize and renovate trains running on Budapests metro line 3, and also to supply the related tools and services, announced BKV on Friday.

Earlier, the tender for overhauling the aging trains was suspended after Estonias Skinest Rail, which was excluded from the tender despite offering a lower price, turned to the Public Procurement Board (KDB) to overrule the decision.

BKV had proposed to the KDB on Tuesday, seeking permission to sign the contract with Metrowagonmash at the earliest, saying that the condition of metro line 3 was critical and dangerous, and it might have to be stopped at any moment.

The KDB approved the contract within a single day. The decision taken on Wednesday ended the public procurement procedure and removed all obstacles from signing the contract, which was signed yesterday.

The Russian company agreed to overhaul and upgrade 37 trains of six cars each and to provide associated services for EUR 219.2 million. The firm will even offer a 25-year warranty on the rebuilt vehicles.

Work is scheduled to begin from this year, with the first overhauled trains expected to enter into service in 2017.

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