GSP Union: Tender for New Trams Collapses as Belgrade Fails to Secure Down Payment

Belgrade's public transport system is facing further setbacks as a tender for 85 new trams, valued at 226 million euros, has been canceled. The City of Belgrade reportedly failed to provide the necessary 22 million euro down payment, leading to the suspension of the procurement process.

This marks the second significant tender cancellation for the Gradsko saobraćajno preduzeće (GSP) in a short span, following the recent suspension of a tender for new trolleybuses. Ivan Banković, president of the GSP Centar union, stated that only one company, the Turkish firm Bozankaya, submitted a bid for the tram tender.

“

Only two days after the suspension of the tender for the purchase of new trolleybuses, the tender for the purchase of new trams, for which only one company, the Turkish Bozankaya, applied, has also failed.

Banković expressed concern, suggesting that the repeated tender failures indicate a deeper issue within Belgrade's public transport system. He cited the city's alarming financial state and substantial debts to GSP, which in turn owes suppliers, as reasons why acquiring new vehicles through the city has become nearly impossible.

The sole bid received proposed a short tram model at a price of 2.66 million euros, including VAT. The union's president believes these financial difficulties are preventing the acquisition of essential new vehicles for the city's public transport.

“

This is further proof that due to the alarming state of Belgrade's public transport system and the City's huge debts to GSP, and subsequently GSP to suppliers, it is no longer possible to procure any new vehicles through the City.