Prasa tender in jeopardy

2015-05-10 08:53
New locomotive. (Prasa)

New locomotive. (Prasa)

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Cape Town - The Passenger Rail Agency of South Africa's (Prasa) massive R51 billion tender for new passenger carriages could derail amid fears of French multinational Alstom's ability to keep to the contract's local content requirements.

Rapport newspaper reported that the Gibela consortium, which consists of Alstom and its South African empowerment partners, is placing pressure on local manufacturers of train components to supply Gibela with their products at significantly reduced prices.

Some of these manufacturers have complained to Prasa that they can't supply the French giant with their products at such discount rates.

The first set of twenty train sets, consisting of six carriages each, are now being built at an Alstom facility in Brazil.

Lucky Montana, Prasa CEO, admitted in an interview with Rapport that his state-owned company had concerns about Alstom's ability to keep to the contract's local content requirements.

"Alstom may be caught by its low (bid) price at about halfway through the contract. If they cannot abide by our local content requirements, we will have to sue them," Montana said.

Some local manufacturers indicated they had only received contracts from Alstom for components for 200 train sets, whilst the R51 billion tender makes provision for the delivery of 600 train sets.

Gibela did not comment on the issues around the local manufacturers' complaints.

Read more on:    alstom  |  prasa  |  transport

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