New state procurement regulations in the European Union have taken a significant toll on the Chinese company CRRC, this is reported by the railway transport news portal Railway Supply.

the tender to supply 20 trains in Bulgaria

Amid suspicions of receiving subsidies enabling them to offer a lower price, CRRC was forced to withdraw its bid from the tender to supply 20 trains in Bulgaria.

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Their offer at €310 million significantly lagged behind Spain’s Talgo, which offered €622 million.

This precedent follows changes in legislation that came into force last year, mandating additional investigations for tenders exceeding €250 million.

The Chinese Chamber of Commerce in the European Union has expressed concern over the use of new rules as a tool to restrict foreign companies, which they fear could lead to their exit from the European market.

Meanwhile, Bulgaria continues negotiations with Talgo, the sole remaining tender participant, hoping for an improved offer.

Talgo has already announced the technical specifications of the trains it plans to supply.

It is notable that in the Organization for Economic Cooperation and Development’s report for 2023, Talgo ranked fourth among European rolling stock manufacturers in terms of the share of government support in revenue for the period from 2016 to 2020, at 0.3-0.4%.

Meanwhile, CRRC’s share of government support was estimated at 2.2-2.3% of revenue.

Photo: Yicai Global

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