Without secured financing, Karadzhov placed an order for 10 biodiesel trains

The Ministry of Transport has issued a public tender for 10 new biodiesel trains. The planned tender was announced by the minister responsible, Grozdan Karadzhov, in mid-June. The published documents show that, in addition to the delivery of ten single-deck railcars, the order includes maintenance for 15 years and staff training.

However, funding for all this has not yet been secured. It is therefore stated that the contract will only be executed after confirmation of funding by the contracting authority, and the supplier will have up to 30 months from the letter of funding to deliver the trains.

The estimated value of the contract is BGN 485,704,320 excluding VAT. BGN 139,876,800 has been allocated for the delivery of the ten trains, which must be capable of reaching a speed of at least 120 km/h. Planned maintenance for 15 years will cost BGN 75,000,000, with a maximum of BGN 5.70/km excluding VAT for the first year. It shall take effect from the registration of the first train until 15 years after the last one; unscheduled maintenance – BGN 13,987,680; BGN 13,987,680 has been allocated for emergency repairs.

Warranty maintenance must be at least 36 months for each train.

In addition to the 10 machines, the order includes an option for 10 more, subject to securing financing. This option may be exercised until December 31, 2027, and delivery is also within 30 months.

If the Ministry of Transport manages to secure funding for the order, it will pay an advance of up to 40% upon receipt of a bank guarantee, with the final payment to be made within 30 days of the trains being registered in the European Vehicle Register (EVR). Scheduled maintenance will be paid quarterly according to the kilometers traveled.

The Ministry of Transport has set the following criteria for participation in the tender:

• Economic – minimum turnover of the candidate of BGN 60 million (net revenue) for the last 3 years in a similar activity;
• Technical experience – at least 5 deliveries of similar rolling stock in the last 5 years;
• Consortia, subcontractors, and the use of third-party capacity are allowed in compliance with the Public Procurement Act.

The final decision will be made primarily on the basis of the “best value for money” principle. Bids that are 20% lower than the average price will require a detailed justification.

Translated with DeepL.