Ukrzaliznytsia And EBRD Begin Preparations For Tender For Supply Of About 7,000 Railcars

11 August 2017 15:33

The European Bank for Reconstruction and Development (EBRD) and the Ukrainian Railways public joint-stock company (Ukrzaliznytsia) have begun preparations for tenders for supply of railcars worth USD 150 million. This was stated by Mark Magaletsky, a senior banker with the EBRD, Ukrzaliznytsia announced.

"We are currently consulting the market to ensure transparency, competitiveness, and non-discriminatory nature of the tender," Magaletsky said at a meeting of representatives of the financial institution, Ukrzaliznytsia, and railcar manufacturing plants in Kyiv on 8 August.

According to Ukrzaliznytsia’s director for engineering support Volodymyr Krot, the company plans to purchase about 7,000 freight gondola cars (between 1,000 and 1,500 gondola cars per lot) under a loan agreement with the EBRD.

Krot also said that the new freight gondola cars would be purchased based on the principles and rules of the EBRD. According to him, the tender is scheduled for September and the railcars are expected to be delivered 12 months from the date of signing of contracts for their production and delivery. Participants in the tender can be residents and non-residents of Ukraine, but they must be experienced railcar manufacturers.

This this project is an integral part of a multistage program for renewal of Ukrzaliznytsia’s rolling-stock fleet, under which Ukrzaliznytsia has determined that it needs to purchase about 24,000 gondola cars. The company is currently seeking funds from the EBRD for partially financing the initial phase of the program.

Ukrzaliznytsia’s head Wojciech Balczun announced in in January 2017 that Ukrzaliznytsia intended to conclude in the second quarter of 2017 negotiations with the EBRD on a loan of USD 150 million loan for purchasing gondola cars.

Earlier, it was reported that the Darnytskyi railcar repair plant, which is a division of Ukrzaliznytsia, had canceled tenders for supply of 1,300 gondola cars. These included three tenders for supply of 350 railcars, the winners of which had already been determined, and four tenders for supply of 950 railcars, in which major Ukrainian producers (Dniprovagonmash and the Kryukov Railcar Building Works) had qualified to participate. The reason given for the cancellation was that the bidders’ offers did not meet the requirements stipulated in the tender documentation.

Following the cancellation of these tenders, the Darnytskyi railcar repair plant invited fresh tenders for supply of 1,300 gondola cars on August 2. The deadline for submission of tenders is 4 September 2017. Bidding is scheduled for 10 October.

As reported, the Darnytskyi railcar repair plant announced on 26 April 11 tenders for supply of 2,465 gondola cars at the expected cost of UAH 1,217 million (including VAT). However, tenders for supply of 1,165 gondola cars were later canceled and fresh tenders invited on 5 July. The deadline for submission of tenders was extended until August 9. Bidding is scheduled for September 14.