Tbilisi terminates the contract with Metrowagonmash

Tbilisi City Hall has initiated the procedure to terminate the agreement with the company “Metrowagonmash”

The agreement envisaged the acquisition of 44 carriages for the Tbilisi Metro, as reported by the railway portal Railway Supply.

The decision to annul the contract was made due to the imposition of international sanctions on the company, related to the production of military goods.

In February, Tbilisi City Hall decided not to fully terminate the contract but to make changes to it with the approval of the European Bank for Reconstruction and Development (EBRD).

This was due to the authorities’ inability to find an alternative carriage supplier at the desired price, and canceling the contract at the subsequent stages of the tender would result in a 30-35% increase in procurement costs.

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In November of last year, the Mayor of Tbilisi, Kaha Kaladze, expressed the intention to refrain from purchasing the carriages after consultations with the EBRD due to potential Western sanctions against “Metrowagonmash.”

He also noted that negotiations were held with other companies regarding the possibility of purchasing carriages.

A two-stage tender was announced by the EBRD in February 2020, and in December 2021, “Metrowagonmash” was declared the winner.

The cost of acquiring 44 new carriages amounted to €49.19 million, and the delivery schedule was expected to be completed within 36 months.

However, in March, the EBRD suspended payments to the company for the supply of rolling stock for the Tbilisi Metro.

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