Business news from Ukraine

KVSZ wins UZ tender for 44 new passenger railcars

“Kryukov Carriage Works (KVSZ) has become the sole bidder in Ukrzaliznytsia’s (UZ) tender for the purchase of 44 new passenger railcars for UAH 1.951 billion, according to the protocol of tender offers disclosure in the Prozorro electronic public procurement system published on September 29.

KVSZ’s offer is pending a decision, according to the tender documents.

The tender was held in the form of a Dutch auction (for price reduction). The minimum step was 0.5% of the contract amount, or UAH 9.75 million. With the declared contract value of UAH 1 billion 951 million 009.4 thousand including VAT, the price of the tender offer of KVSZ after the auction was UAH 1 billion 951 million 008.6 thousand including VAT.

As reported, the winner of the tender should produce 12 passenger sleeping cars (PS) and 20 compartment cars, three passenger compartment cars equipped for the transportation of wheelchair users and a train manager’s compartment, 9 open-seat cars for UZ, with delivery by December 31, 2025.

The tender terms were adjusted, in particular by increasing the level of advance payment. According to the contract payment terms published in Prozorro, an advance payment of 65% is due 14 days after the invoice date. Full payment is made 30 calendar days after delivery of the goods in the amount of 35% of the contract amount.

Earlier, in an interview with Interfax-Ukraine, Yevhen Lyashchenko, Chairman of the Board of Ukrzaliznytsia, said that the company would soon hold a tender for the purchase of 44 new passenger cars for UAH 1.9 billion, and in 2024 another tender for the purchase of 100 cars at the expense of the state budget, for about UAH 5 billion.

The head of UZ expressed hope that KVSZ, with which Ukrzaliznytsia has fully paid off its debts for the supplied passenger cars, as well as other large machine-building companies, will participate in the tender in 2023. He pointed out that the level of advance payments had been increased, which was critical for manufacturers.

UZ reported that the new cars will be equipped with vacuum toilets, changing tables, sockets and USB ports for fast charging of gadgets, electronic displays, and coffee makers. Cars for the transportation of passengers with disabilities will be equipped with lifting platforms for comfortable boarding of passengers in wheelchairs. Doors in compartment and SV cars will be equipped with an alarm system and a door lock button for greater passenger safety. There is also a video surveillance system.

The company also clarified that the tender conditions reflect the changes that the government made the day before to the procedure for using budget funds under the passenger rolling stock renewal program in order to attract manufacturers to the tender and provide all conditions for an effective purchase, unlike the previous tender, which was held in accordance with the procedure before the changes were made.

In June, UZ canceled a tender for the purchase of 20 passenger railcars for UAH 882 million due to a lack of bids. The tender provided for an advance payment of 29.99% of the contract amount, which was to be made within 15 banking days.

By the spring of this year, KVSZ completed the fulfillment of UZ’s order for the supply of 100 passenger railcars under the contract concluded in 2021 for more than UAH 3 billion.

, , ,