01.Feb .2023 13:03

Tbilisi City Hall To Buy Metro Wagons From Russian Metrovagonmash For Eur 48 MLN

Tbilisi City Hall To Buy Metro Wagons From Russian Metrovagonmash For Eur 48 MLN
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Tbilisi City Hall will purchase Metro Wagons from the Russian company Metrovagonmash. The decision has been made and the contract will no longer be terminated. According to the vice mayor of Tbilisi, the terms of the contract have been changed with the Russian company that won the EBRD tender announced in 2021.

Irakli Khmaladze explained that the changes were made due to avoid the financial risks and clarified that the Russian company Metrovagonmash is not sanctioned.

"Changes have been made to the contract and our financial risks are insured as much as possible. Taking into account that at this price we would not be able to purchase wagons from an alternative supplier, and if we were to switch to the next offer provided in the tender, the purchase would be 30-35% more expensive, we tried to conclude the negotiations with the existing supplier in such a way as to protect our interests as much as possible. We have reached these conditions and agreed with the European Bank for Reconstruction and Development every stage and every point that was included in the contract. With this contract, the manufacturing of wagons will begin, and we hope that these wagons will be delivered to the municipality within the stipulated period of the contract," said Khmaladze.

Metrovagonmash is to deliver 44 wagons worth EUR 49,190,000 to the capital city of Tbilisi. The purchase price amounts to GEL 172 million.

On March 11, 2022, the Tbilisi City Hall issued a statement, noting that the EBRD has suspended the financial settlement with Metrovagonmash.