24.08.2023

RAIL BALTICA MAINLINE CONSTRUCTION IN LATVIA – possible selection of the consortium’s bid

The Management Board of Budimex S.A. announces that on 24 August 2023, a consortium composed of Eiffage Genie Civil (consortium leader with a share of 50%), Budimex S.A. (with a share of 30%) and Rizzani de Eccher S.p.A. (with a share of 20%) was informed by the Ordering Party – SIA EIROPAS DZELZCEĻA LĪNIJAS – of the possible selection of the consortium’s bid in the contract award procedure titled “RAIL BALTICA MAINLINE CONSTRUCTION IN LATVIA”.

This information does not mean the final selection of the consortium’s bid as the most advantageous one, as the bid evaluation procedure has not yet been finalised.

Ordering Party: SIA “EIROPAS DZELZCEĻA LĪNIJAS”.

Consortium name: E.R.B. Rail Baltica JV.

Composition of the ERB Rail Baltica JV consortium:

  • Eiffage Genie Civil – share in the consortium 50%,
  • Budimex S.A. – share in the consortium 30%,
  • Rizzani de Eccher S.p.A – share in the consortium 20%.

Value of the bid submitted by the consortium: EUR 3,698,833,520.41

Value of shares in the bid:

  • Eiffage Genie Civil – 50%:            EUR 1,849,416,760.21
  • Budimex S.A. – 30%:                   EUR 1,109,650,056.12
  • Rizzani de Eccher S.p.A. – 20%:    EUR 739,766,704.08

PLN value of the bid submitted by the consortium: PLN 16,533,785,836.23

Value of shares in the bid:

  • Eiffage Genie Civil – 50%:            PLN 8,266,892,918.12
  • Budimex S.A. – 30%:                   PLN 4,960,135,750.87
  • Rizzani de Eccher S.p.A. – 20%:    PLN 3,306,757,167.25

Works commencement date: to be communicated by the Ordering Party in the Work Commencement Order.

Works completion date: 96 months from the signing of the contract.

Defect notification period for the main works: 5 years.

Guarantee period:

1) 10 years – for construction works,

2) 15 years – for the structure’s waterproofing,

3) 15 years – for bridges and flyovers,

4) 20 years – if intentionally hidden defects are detected.

Advance payment: 15% of the Accepted Contract Amount, excluding specialised materials and equipment, for which the advance payment will be 70%.

Payment terms: monthly payments made according to the advancement of the work, invoice payment period – 32 days.

Bank performance bond: general security for a value of EUR 15 million and 10% of the Accepted Contract Amount (these values are expressed for the entire consortium).

Maximum value of contractual penalties payable by the Contractor:

1) 100% of the Accepted Contract Amount for Section I,

2) 10% of the Accepted Contract Amount for Section II, III, IV,

3) if the Ordering Party withdraws from the contract for reasons attributable to the Contractor – 50% of the value of the work still to be completed.

Contractual penalties payable by the Contractor do not differ from market standards.

There are no contractual penalties payable by the Ordering Party.

The Ordering Party reserves the right to demand supplemental damages in excess of the contractual penalties up to the amount of the actual loss that was incurred or could be incurred due to the improper performance of the contract by the Contractor, if such improper performance is a result of wilful misconduct or gross negligence.

Total limit of liability: 100% of the Accepted Contract Amount for the Committed Sections, but not more than EUR 400,000,000.

Governing law: the law of the Republic of Latvia.

Other contractual terms and conditions do not differ from the market standards.

 

The bid value exceeds the threshold of PLN 172,381 thousand net.