Skoda Transtech urges Helsinki and Vantaa to halt tram deal

Tram manufacturer Skoda Transtech is calling on the city boards of Helsinki and Vantaa to halt and re-run a 1.6 billion euro tram procurement, Yle reports.

In a memorandum sent to the city boards, the company argues that most of the procurement’s costs have not been disclosed to decision-makers. According to Skoda Transtech, 1.3 billion euros of the planned spending remains unexplained, and it is unclear how the money will be allocated.

The company says the public has been told only the price of the basic tram purchase, which has risen from 271 million euros to 332 million euros. It also argues that the cities must prepare for unknown lifecycle costs.

Skoda Transtech further claims that the agreement would constitute an illegal direct procurement.

The company previously appealed the tendering process to the Market Court, which rejected the appeal. It has also contacted the competition and consumer authority, but the authority does not have the power to halt the procurement process.

Helsinki City Transport has said the procurement will proceed with Stadler, which won the tender. The matter is moving forward normally in the city councils.

Skoda Transtech designs trams in Oulu and manufactures them at its factory in Kajaani.