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Skinest Rail submits complaint to European Commission over Budapest M3 Metro tender

Skinest Rail submitted a formal complaint to the European Commission over the public procurement procedure begun by Budapesti Közlekedési Zártkörűen Működő Részvénytársaság (BKV Zrt.) for the modernization and renovation of the vehicles of the Budapest Metro Line M3, a press release said yesterday.

The company handed the complaint in after BKV Zrt. qualified their bid as invalid on July 8 and awarded Russian Metrowagonmash (MWM) with the tender, the press release says. 

The press release adds that the company is “extremely disappointed” by the outcome of the tender process and is said to be issuing a formal complaint to the European Commission, which “contends that its bid was more favorable in every key aspect, as its proposal meets all modern technical requirements – asynchronous drive, disc brakes, pneumatic suspension, longer life cycle, etc. – and the eight points cited by BKV Zrt. as reasons to disqualify the Skinest bid are formal in character.”

The press release notes, however, that “a Hungarian Parliament bill for the acceleration and simplification of certain development investment projects in Budapest was passed on the same day as the announcement of the tender winner, and was dubbed the M3 Act because of its focus on the M3 modernization project. The M3 Act also limits the effective legal remedies available to contending bids in such public procurement procedures, leaving Skinest with the only practical recourse of a formal complaint to the European Commission. Skinest is ready and willing to provide any assistance or contribution for the purposes of any European Commission investigation.”