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.

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Boryspil Airport Announces Tender for Driver Insurance

On September 26, Boryspil International Airport (Kyiv) announced a tender for compulsory insurance of drivers against transport accidents.

According to the electronic public procurement system Prozorro, the expected price offer was UAH 43,972 thousand.

Applications for participation in the tender are accepted until October 4.

As reported, the winner of a similar tender a year earlier was Guardian Insurance Company.

Boryspil International Airport accounts for over 68% of Ukraine’s passenger air traffic and is the only Ukrainian airport that serves long-haul flights. More than 50 airlines operate regular flights from the airport to more than 100 routes around the world.

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Ukrfinzhytlo has announced tender for VHI with budget of UAH 1.5 mln

“On September 6, Ukrainian Financial Housing Company announced a tender for the purchase of health insurance and health insurance in case of illness.

According to a posting in the Prozorro electronic public procurement system, the expected cost of the services is UAH 1.494 million.

Documents will be accepted until September 21.

“Ukrfinzhytlo is engaged in the state program to provide affordable mortgage lending.

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Guardian Insurance Company wins Ukrposhta’s tender

On August 24, Ukrposhta, the Ukrainian state postal service enterprise, announced its intention to conclude a contract with Guardian Insurance Company for the provision of compulsory motor third party liability insurance (MTPL).

According to the Prozorro electronic public procurement system, the company’s price offer amounted to UAH 681,743 thousand, with the expected value of the tender at UAH 2.166 million.

The tender was also attended by European Insurance Alliance (UAH 1.003 million) and Krayina (UAH 1.077 million).

Guardian Insurance Company has been operating in the insurance market since 2007.

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PJSC “Ukrgasvydobuvannya” announced tender for insurance

PJSC Ukrhazvydobuvannya (Kiev) on August 25 announced a tender for compulsory insurance of liability of subjects of transportation of dangerous goods in case of negative consequences during transportation of dangerous goods

As reported in the system of electronic public procurement ProZorro, the expected cost of the purchase of services is UAH 1,601 thousand.

The deadline for submission of documents for these two lots is September 2

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Krukiv Carriage Works has won tender for supply of 50 subway cars to Kyiv

The Tender Committee of the Kyiv Metro has awarded Kryukiv Carriage Works (KVSZ, Poltava region) a victory in the tender to supply Kyiv with 10 units of five-car subway trains financed by the European Bank for Reconstruction and Development (EBRD) with a bid of almost EUR79.196 million (including VAT), the KVSZ press service reported on Friday.

“Today the much desired for KVSZ and partner enterprises message about the award of victory in the tender for the supply of metro trains has appeared. The proposal of domestic carriage builders was accepted by the tender committee and agreed with the EBRD,” the report says.

The press-service of KVSZ emphasizes that the offer of the Ukrainian plant was 37% lower than that of the second participant – Czech Skoda.

KVSZ offered a subway train with asynchronous traction drive with three motor and two trailing non-motor cars, with bogies of domestic production with central pneumatic suspension and disk brakes.

Train length – 97 m, design speed – 90 km/h, designated service life – 50 years, its total capacity (including standing passengers) – 1650 people.

There are two inclusive seats for wheel chair passengers. Movement of passengers from car to car is free – through hermetic passages (train “pipe”), which KVSZ has been using for more than 10 years in the manufacture of passenger rail rolling stock.

As reported, the tender for the delivery of 50 subway cars (including spare parts and consumables, equipment and tools for maintenance, repair and related services) to Kiev for EBRD funds was announced back in December 2020, the proposals of the participants of the second stage were considered in March this year.

KVSZ recalls that it is ready to offer similar metro cars for Kharkiv Metro, which on May 5, 2023 announced a tender for the purchase of five-section metro trains (with free passage between cars) for EUR45 mln with the funds of the European Investment Bank (EIB), but due to discriminatory, in its assessment, requirements will not be able to participate in it.

The tender committee, in particular, demanded confirmation of experience in supplying at least 30 subway cars over the last five years, while KVBZ “put on the rails” 170 cars, but not over the last five years.

In addition, the conditions prescribe requirements only for European standards.

As reported, Kharkiv has again postponed the deadline for consideration of participants’ proposals in this tender – to October 10, 2023.

KVSZ, Ukraine’s largest railcar building enterprise, produces passenger and freight cars, regional diesel trains, high-speed interregional locomotive traction trains, spare parts and bogies for freight cars.

The company’s net income in 2022 increased by 38.4% to UAH 3 bln 545 mln, net profit amounted to UAH 37.25 mln against a loss of UAH 230 mln a year earlier.

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