Poland’s Mirbud consortium has renewed its chances of securing a 5 billion złoty railway modernization contract following a ruling by the Supreme Administrative Court.
Contract Dispute Revived by Court Decision
A recent ruling by the Supreme Administrative Court has reinstated the prospects of a Polish consortium, comprised of Mirbud and Torpol, in the competition for a major railway modernization contract. The contract concerns the Rail Baltica line.
The court overturned a 2023 ruling by the Regional Administrative Court concerning a penalty imposed on Mirbud during a previous highway construction project. The original penalty of 15,000 zł was the basis for the consortium’s disqualification from the Rail Baltica tender.
Penalty Disclosure Was Key to Disqualification
Mirbud was penalized 15,000 zł for issues during the construction of the S1 expressway. Failure to disclose this penalty in the Rail Baltica tender documents led to the consortium’s initial exclusion. The Rail Baltica project, valued at approximately 5 billion złoty, is PKP Polskie Linie Kolejowe’s largest recent undertaking.
Competing Bids and Appeals Complicate Process
The initial tender was won by the Torpol-Mirbud consortium, but this decision was challenged by Budimex-PORR, who submitted a bid 400 million złoty higher. Budimex-PORR raised the issue of Mirbud’s environmental penalty. The National Chamber of Appeal initially sided with Budimex-PORR, leading to their designation as the winner.
However, a subsequent appeal by Track-Tec, the third-ranked bidder, succeeded, with the KIO finding that Budimex had inadequately applied the “self-cleaning” procedure. The KIO previously found Budimex offers were submitted under unfair competition conditions in a separate tender.
Mirbud Seeks Reversal of Appeal Ruling
Mirbud believes the NSA ruling strengthens its position in securing the contract. A hearing is scheduled for June 19th at the Warsaw District Court regarding an appeal filed by Torpol and Mirbud, seeking to overturn the National Chamber of Appeal’s decision that disqualified them.
Anna Więzowska, a board member and legal director at Mirbud, stated the NSA ruling confirms their argument that Mirbud was not obligated to comply with the environmental decision and therefore could not have violated it.
Potential Contract Cancellation Looms Due to Delays
PKP PLK is currently analyzing the legal situation and considering the possibility of canceling the tender due to prolonged legal disputes. The project is funded by the “Connecting Europe” program, with funds needing to be allocated by the end of 2029.
Marcin Mochocki, vice president of PKP PLK, warned that failure to meet the deadline could necessitate seeking alternative funding sources.
Project Aims for Higher Speeds and Double Track
The planned modernization of the Białystok to Ełk line aims to increase speeds from 100-120 km/h to 200 km/h and add a second track. This section is intended to become part of a high-speed route to the Baltic states, with the entire project expected to be completed in the first half of the 2030s.