Bulgaria's Railways Contract Turkey's Tuvasas for 30 Sleeping Cars

Business | May 27, 2011, Friday // 17:57|  views

Bulgaria's state railways have gone through with an order for sleeping cars from Turkey. Photo by BGNES

The Bulgarian State Railways BDZ will order the construction of 30 sleeping cars to Turkey's state owned manufacturer Tuvasas after BDZ lost a court battle trying to cancel the order.

The CEO of the debt-ridden Bulgarian state railways Pencho Popov and the technical director of the company Georgi Panchev visited the production facilities of Tuvasas in Turkey's Adapazari.

During their meeting with the management of the Turkish state railways plant, the order for the 30 sleeping cars has been approved, and their construction has been set off, the Bulgarian National Radio reported.

In addition to buying sleeping cars from Tuvasas, BDZ is also interested in the diesel and electric locomotives of the Turkish producer.

Tuvasas is expected to deliver all 30 cars to BDZ by 2013. Five of the sleeping cars will be fit for people with disabilities. Each of the cars will have ten compartments, electricity supply, air conditioner, and environment-friendly toilets.

The price that Bulgaria's BDZ will pay for the 30 sleeping cars has not been revealed.

In the fall of 2010, Tuvasas defeated in court the Bulgarian state railways over the same order as BDZ tried to cancel the deal after initially contracting the Turkish company.

In considering Tuvasas's appeal, a Bulgarian court came to a conclusion the tender could not be canceled. Following the decision BDZ had to accept 30 sleeping cars from Tuvasas in accordance with the conditions of the tender.

The tender process dates back to the initial bidding process of April 11, 2008, after which Adapazar?-based Turkish company Tuvasas offered to produce the wagons for nearly EUR 1 M less than its closest competitor.

BDZ had to finalize the agreement in the month following bidding, but the state company allegedly used the budget for other business. After the general elections in July 2009, the new government in Sofia reshuffled the BDZ administration. BDZ refused to inform the Turkish company of reported misuse of funds and canceled the tender altogether in July.

Later, BDZ opened another tender, prompting Tuvasas to appeal to Bulgaria's Competition Protection Commission. The Commission rejected the appeal and Tuvasas was forced to go to the higher court.

According to the court decision, BDZ either had to purchase the sleeping cars or had to pay substantial damages to Tuvasas.

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Tags: Tuvasas, BDZ, Bulgarian Railways Company, Adapazari, Bulgarian State Railways, Pencho Popov, sleeping cars, turkey

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