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Belgrade trolleybus tender receives one offer, but financing is uncertain
๐Ÿ‡ท๐Ÿ‡ธ Serbia /Economy & Trade

Belgrade trolleybus tender receives one offer, but financing is uncertain

From N1 Serbia · () Serbian

Translated from Serbian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • A tender for 60 new trolleybuses for Belgrade's public transport company received only one offer from SDT Group for 53.9 million euros.
  • The offer is for trolleybuses with a 20-kilometer autonomous range but lacks secured financial leasing, which the union attributes to the company's significant debts.
  • The union fears the tender will fail due to the company's financial state and proposes that the Serbian government directly handle the procurement.

Belgrade's public transport company, GSP, has received only one bid for a tender to acquire 60 new trolleybuses, a move that union representatives believe is doomed to fail. The sole offer comes from SDT Group, valued at 53.9 million euros, for trolleybuses with a 20-kilometer autonomous range.

However, the bid reportedly lacks secured financial leasing. According to the GSP's "Centar" union, this is because no bidder could secure financing due to the company's substantial debts. Union president Ivan Bankoviฤ‡ stated that they had warned GSP management and the city administration about the necessity of securing funds and guarantees before the tender was announced.

"They told us we were wrong, but now it is proven that in this way and in a situation where the largest city company is drowning in debt, suppliers are stopping further cooperation and threatening lawsuits and forced collection, no new vehicle for GSP can be procured through the City of Belgrade," Bankoviฤ‡ said. He added that an urgent meeting of the union, citizens' associations, and GSP workers decided to propose that the Serbian government directly manage the procurement of new trolleybuses, similar to the process for 50 electric buses for the Expo project.

Bankoviฤ‡ attributed the company's dire financial situation to poor management, detrimental decisions, and the increasing allocation of work to private carriers over the past three years. He argued that these factors have led to unsustainable costs that the city's budget can no longer cover.

They told us we were wrong, but now it is proven that in this way and in a situation where the largest city company is drowning in debt, suppliers are stopping further cooperation and threatening lawsuits and forced collection, no new vehicle for GSP can be procured through the City of Belgrade.

โ€” Ivan Bankoviฤ‡President of the GSP "Centar" union, commenting on the failed tender.
DistantNews Editorial

Originally published by N1 Serbia in Serbian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.