MÁV railway tenders annulled by arbitration board

The Public Procurement Arbitration Board has annulled a decision by the Hungarian State Railways (MÁV) regarding two railway tenders valued at approximately 7.3 billion forints. The ruling follows a challenge by Swietelsky Vasúttechnika Kft. against the previous selection of the Homlok-owned companies (Homlok Fővállalkozó Építőipari és Kereskedelmi Kft. and Vasútvill-Gép Kft.).

The Arbitration Board determined that MÁV unlawfully accepted the Homlok companies' bid despite an inadequate justification for their disproportionately low price. If MÁV does not initiate a new procurement process, the contracts may be awarded to the next most favorable valid bidder, which is Swietelsky.