EU Investigation Prompts Chinese Rolling Stock Giant's Withdrawal from Public Procurement in Bulgaria

Politics | March 27, 2024, Wednesday // 08:40|  views

CRRC Qingdao Sifang Locomotive Co., Ltd., a major Chinese rolling stock manufacturer, has withdrawn from a procurement tender in Bulgaria following an investigation by the EU Commission.

EU Commissioner for Internal Market, Thierry Breton, issued a statement on Tuesday regarding CRRC Qingdao Sifang's withdrawal. The move comes in the wake of the Commission's initiation of an investigation under the Foreign Subsidies Regulation, aimed at scrutinizing potential unfair advantages provided to the company.

The Commission's probe targeted a public procurement tender organized by the Bulgarian Transport Ministry. CRRC Qingdao Sifang's withdrawal from the tender coincides with the Commission's announcement of an in-depth investigation under the Foreign Subsidies Regulation. Consequently, the investigation will now be closed.

The public procurement tender in question pertains to the acquisition of 20 electric push-pull trains, along with their maintenance over a span of 15 years. With an estimated contract value of approximately BGN 1.2 billion or EUR 610 million, the tender attracted considerable attention within the industry.

CRRC Corporation Limited, the parent company of CRRC Qingdao Sifang, stands as a state-owned enterprise and ranks as the world's largest rolling stock manufacturer in terms of revenue. Rolling stock manufacturers play a pivotal role in supplying locomotives, carriages, subways, trams, and other railway vehicles to operators worldwide.

The EU Commission's intervention underscores the importance of fair competition in public procurement processes and seeks to uphold the integrity of the European market. The withdrawal of CRRC Qingdao Sifang from the tender signifies a notable development in the ongoing efforts to ensure transparency and fairness in cross-border transactions.

We need your support so can keep delivering news and information about Bulgaria! Thank you!

Tags: EU Commission, CRRC, procurement, investigation


» Related Articles: