MAV-Trakcio calls tender to finance locomotive purchase

MAV-Trakcio, the traction unit of state-owned railway company MAV, announced in the latest issue of the Public Procurement Gazette a two-round tender to finance the purchase of 25 Bombardier TRAXX locomotives for EUR 74.7 million.

MAV will use the financing to call an option for the locomotives. If it does so by September 5, 2010, Bombardier will deliver them with a EUR 200,000-per-unit discount off the original price of EUR 3,187,000. MAV placed an order for 25 Bombardier TRAXX engines in January, paying for delivery with a EUR 79.6 million loan from the European Investment Bank (EIB) and Germany's KfW IPEX Bank. KfW IPEX provided 52pct of the loan and the EIB 48pct. The first payment on the 15-year loan is due in June 2013.

News Monitoring