Court Annuls Train Purchase Deal

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The Public Procurement Arbitration Court found that Hungarian State Railways Rt. (MÁV) violated the law on public procurements and declared void MÁV’s HUF 120 billion–HUF 130 billion train purchase transaction.

The Court said it imposed a HUF 10 million fine on MÁV for violating the law. On March 18, MÁV announced that Swiss-Hungarian consortium Stadler-Ganz Transelektro was selected as the winner to supply and operate 60 electric trains for MÁV. Soon after MÁV’s announcement, losing bidder Bombardier turned to the Public Procurement Arbitration Court and requested review of MÁV’s evaluation and decision-making process.

In its review process, the Arbitration Court declared void MÁV’s modifications on the evaluation procedure, the rules of the price contest and every subsequent decision.

The Court highlighted that every public institution or company like MÁV when seeking bids for purchases has to make clear every detail that affects the way the bids are evaluated. Such details cannot be modified during the process of evaluation. The Court’s decision is subject to appeal.