The European Commission has initiated the first investigation under the new European rules on public procurement for companies whose states are not EU members, this is reported by the railway transport news portal Railway Supply.

The new European rules on public procurement for companies

According to these rules, tenders worth over 250 million euros, as well as proposals from companies receiving over 4 million euros in state aid in the last three years, are subject to analysis by the European Commission.

A new machine for servicing the railway overhead line system

In January 2024, the Ministry of Transport and Communications of Bulgaria announced a tender for the purchase of 20 single-deck push-pull trains and their subsequent maintenance for 15 years.

The total value of this tender was about 1.2 billion levs, equivalent to 613.6 million euros.

The previous tender was canceled due to the non-compliance of the proposals of two companies with the technical requirements.

Talgo offered its price at 1.22 billion levs, while Chinese CRRC Qingdao Sifang Locomotive evaluated its production at 607 million levs.

CRRC Qingdao Sifang Locomotive applied to participate in the new tender, however, after preliminary investigation, the European Commission considers the price offered by this company unreasonably low.

Detailed investigation is expected to be completed by July 2, 2024, when a decision will be made on the eligibility of the subsidiary of the CRRC corporation to participate in this tender.

The questions arising about competition and the influence of Chinese state subsidies on pricing in this case are of significant interest to the EU.

Rail business, industry, and railway technology news from Railway Supply that you might have missed:

Siemens Mobility has signed a framework agreement with Railpool for the supply of up to 250 locomotives

Find the latest news of the railway industry in Eastern Europe, the former Soviet Union and the rest of the world on our page on Facebook, Twitter, LinkedIn, read Railway Supply magazine online.

Place your ads on webportal and in Railway Supply magazine. Detailed information is in Railway Supply media kit