Belgium's Top Court Halts €4.6 Billion Train Deal Over Tender Transparency Concerns
April 18, 2025
Alstom had filed an urgent request against SNCB's decision, arguing that the evaluation method violated public procurement laws.
Concerns have been raised about potential job losses in Belgium, particularly for Alstom, which employs approximately 3,000 people in the country, including nearly 800 jobs at risk in Bruges.
Alstom argued that its bid was €107 million lower than CAF's, which has operations in Spain, Brazil, Mexico, and the United States.
This ruling was issued in response to a legal challenge by Alstom, which claimed that the negotiation process was arbitrary and lacked transparency.
The Council found that SNCB failed to meet the transparency requirements mandated by public procurement legislation, criticizing the unclear evaluation method employed for the bids.
Three bids were submitted for the contract from CAF, Siemens, and Alstom, with Alstom initiating legal action due to concerns over job losses.
Belgium's highest administrative court, the Council of State, has suspended the National Railway Company of Belgium's (SNCB) decision to purchase new trains from the Spanish firm CAF due to a lack of transparency in the tender process.
The court annulled SNCB's exclusive negotiations with CAF for a contract valued between €3.4 billion and €4.6 billion, citing concerns over the evaluation criteria used.
The SNCB's tender, launched in late 2022, aimed to build hundreds of new AM30 trains to support suburban and Intercity services, essential for fleet renewal and accommodating increasing passenger numbers.
Alstom, which has multiple facilities in Belgium, faces significant implications from this decision, as the future of its operations could be jeopardized.
While SNCB has acknowledged the court ruling, it stated that it will not comment further until a separate appeal is resolved, indicating that the ruling may not require a new tender process.
Minister of Mobility Jean-Luc Crucke noted that the decision to select CAF was made unanimously by the SNCB's works council, which includes representatives from various political parties.
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