POLAND: Suburban operator SKM Warszawa announced on October 17 that it was cancelling its contract with Pesa for the supply of 13 electric multiple-units, owing to the supplier’s failure to meet the delivery deadlines.

SKM signed the 310·5m złoty contract on May 21 2018. The base order covers eight five-car and five four-car Elf2 EMUs, and there are options for one four-car and seven five-car units.

SKM said that the delivery schedule was one of the more important criteria in the selection of Pesa over rival bidder Newag, with the manufacturer committing to supply the first 10 trainsets by the end of 2019.

As delays to the specified delivery schedule could result in the cancellation of EU funds towards the procurement, SKM has the option to withdraw from all or part of the order if the supply of any unit is delayed by at least 30 days. In this event, the operator is entitled to compensation worth 20% of the cost of the entire order; under public procurement law, this cannot be waived. Pesa currently foresees a delay of 87 days for the first train, 56 for the second and 25 for the third.

Pesa said that it ‘regrets and is surprised to learn about the decision’, adding that ’the surprise is even greater, as over the past few months we have been working intensively with the SKM board on a joint solution of the issue that would be beneficial for both sides’. Pesa says that production of the trains is already underway with testing of the first unit starting recently, and that the last units would have been delivered ahead of schedule despite the initial delays.

SKM said that it undertook the decision following work to resolve the situation ‘optimally for both parties’. The operator is currently considering its options for a new rolling stock tender.