Belgrade Tram Tender Faces Collapse Over Funding Issues

Belgrade's ambitious plan to acquire 85 new trams is in jeopardy, with the tender process stalled for three months after the opening of bids. The sole bidder, Turkish company Bozankaya, has yet to be awarded the contract, and reports suggest the entire procurement could be halted.

The public procurement for the trams was announced at the end of 2025, initially expected to conclude by February 4. However, the process was repeatedly extended due to modifications, additional information requests, and protection rights filings. While the final deadline for submissions was April 20, no decision has been made in the nearly three months since. The Republic Commission for Protection of Rights rejected protection requests filed separately by Končar from Zagreb, PESA, and Škoda.

Bozankaya submitted the only bid, valued at 187.424 million euros without VAT (224.9 million euros with VAT), averaging 2.2 million euros per tram. Their offer included trams with a capacity of 147 passengers, a 9-month delivery time for the first tram, and a 24-month warranty. Specific guarantees were offered for the body, chassis, and floor assembly (96 months) and paint (60 months). A 10% advance payment was stipulated, with a 36-month deadline for the delivery of all 85 trams.

Despite meeting the formal requirements, the contract remains unsigned. Sources indicate that the primary obstacle is the unstable financial footing of GSP Beograd, the public transport company. GSP Beograd reportedly lacks the necessary funds for this purchase without significant subsidies and assistance from the City of Belgrade. The company is currently facing approximately 6.7 billion dinars in outstanding debts, leading numerous suppliers to suspend cooperation and threaten legal action. The City of Belgrade has sought financial aid from the Republic for this procurement, but a decision on that assistance is still pending.