Stadler Polska, the company chosen by the Bulgarian Ministry of Transport to deliver 7 double-decker trains and 35 multiple-unit trains, has officially withdrawn from the contracts, the ministry announced at the end of July. The funding was secured under the Recovery and Resilience Plan, which allocated nearly 3 billion levs (1.53 billion euro) for new trains.
As a result, two of the ministry's three major tenders will not result in any train deliveries. While a contract was signed for seven double-deckers, the company had not finalized a contract for the second order, for multiple-unit trains, despite being ranked first.
"The Ministry of Transport and Communications has received a letter from Stadler notifying us that, under Article 37, paragraph 7 of the contract, it should be terminated. The letter also states their withdrawal from the procedure to deliver 35 multiple-unit trains," announced the ministry. So far, the company has not officially commented on the reasons for the withdrawal.
Termination of the first contract
Stadler Polska requested the termination of the contract signed on April 26, 2024, for the "Supply of 7 double-decker zero-emission electric multiple-unit trains with a capacity of at least 300 seats, including 15 years of maintenance and staff training", as per the tender documentation. These trains were intended for suburban areas of major cities, such as Sofia and Plovdiv, to operate as urban railways (similar to the S-Bahn system in Germany). The manufacturer was selected through direct negotiations, with a contract price of 300.5 million levs (153 million euros) and a delivery timeframe of 26 months.
"The initial deadline for the contractor to submit a bank guarantee was 30 working days after receiving notification of secured funding. Following a justified request from Stadler, this deadline was extended by an additional 52 working days. The final deadline for submitting the bank guarantee expired on July 22, 2024, and it was not provided, which further confirms the company's refusal to fulfil the contract," the ministry stated.
"Throughout negotiations between the Ministry and Stadler, significant efforts were made to reach mutually beneficial solutions within the legal framework. Nevertheless, we remain in continuous dialogue with the European Commission and will make maximum efforts to fully and timely implement the railway sector reform outlined in the Recovery and Resilience Plan," stated Transport Minister Georgi Gvozdeykov.
A new contender at the last minute
To navigate the situation with the tender for 35 single-decker multiple-unit trains with a minimum of 200 seats each, the Ministry of Transport is considering signing a contract with the second-ranked company, Polish manufacturer Pojazdy Szynowe PESA Bydgoszcz.
Stadler Polska was ranked first with the lowest bid of 642.5 million levs out of four offers submitted during the direct negotiation process. PESA Bydgoszcz's offer is priced at 840 million levs. Progress has also stalled on the largest tender, valued at 1.2 billion levs (611 million euro), for the supply of 20 single-decker electric push-pull trains capable of reaching speeds of up to 200 km/h, with a minimum capacity of 300 seats each and 15 years of maintenance. These trains are intended to form the backbone of the intercity fast train network (InterCity). This tender was derailed earlier this spring when the lowest bid, submitted by China's CRRC Qingdao Sifang Co. at 607 million levs was deemed incompatible with EU policies because the company received Chinese government subsidies.
Ultimately, the Chinese company withdrew its offer, and the evaluation committee found that Spain's Talgo, ranked second with a proposal of 1.2 billion levs, did not meet the requirements, which led to the cancellation of the tender procedure in April. In late June, Gvozdeykov announced ongoing negotiations with the EU Commission to change the type of trains to a model that could be produced faster but no progress has been announced so far.
As a result, despite the significant funds earmarked for new trains, Bulgaria is on track to purchase only nine electric shunting locomotives for non-electrified depots under the Recovery Plan. The contract was signed with Ruse-based company Express Service. The delivery timeline is set at 30 months, with a total cost of 10.5 million levs. The other, more expensive portion of the order valued at 52 million levs for an additional nine shunting locomotives for partially electrified depots, was canceled at the beginning of the year. Meanwhile, in neighboring Romania, the first 62 new trains purchased under their Recovery Plan, also from a Polish manufacturer, have already begun arriving.
Stadler Polska, the company chosen by the Bulgarian Ministry of Transport to deliver 7 double-decker trains and 35 multiple-unit trains, has officially withdrawn from the contracts, the ministry announced at the end of July. The funding was secured under the Recovery and Resilience Plan, which allocated nearly 3 billion levs (1.53 billion euro) for new trains.
As a result, two of the ministry's three major tenders will not result in any train deliveries. While a contract was signed for seven double-deckers, the company had not finalized a contract for the second order, for multiple-unit trains, despite being ranked first.
