Antitrust League expert Vladimir Datsenko said that Ukrzaliznytsia ordered the repair of two old diesel generators at the price of almost new ones.

UZ repairs old diesel generators at the price of new ones - Antitrust League

So, at the end of 2021, the company entered into an agreement with Poltava Diesel Locomotive Repair Plant LLC for the repair of equipment for UAH 25.5 million, informs Railway Supply magazine.

The contractor won the tender, but without competition, because the other bidder was LLC Trade House Diesel Locomotive Repair Plant, which gave a certificate that, in case of victory, it would attract a contractor who would be a “competitor” in the tender.

“For 900 thousand dollars, the contractor will carry out a partial replacement of parts (crankshaft and cylinder covers) and repair a 30-40-year-old Soviet engine to more or less working condition. As a result, UZ will receive the same old diesel generator with a guarantee of 1.5 years of operation.” — VLADIMIR DATSENKO

Locomotive repair

The expert notes that one of the most expensive locomotive diesel generators with similar characteristics is the American Caterpillar C175-16, which Stadler installs on the latest models of EuroLight and EURODUAL locomotives. The cost of a new such diesel generator is about 800-900 thousand dollars per unit.

“That is, for $1.6 million you can get a pair of the most modern diesel power plants with a service life of 15-20 years. At the same time, for colossal funds, UZ orders the “restoration” of an old engine manufactured back in the USSR ..” -VLADIMIR DATSENKO

Recall that at the end of 2021, Ukrzaliznytsia announced a tender to select a contractor for the overhaul of 13 2TE116 diesel locomotives. Estimated cost of works is UAH 743 mln.

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