Scotland is set to take delivery of 130 new electric trains from
late 2010 in a deal worth over £200m following a procurement
process managed by Scottish government agency Transport
Scotland.
The deal, which is the largest boost to the country’s electric
train fleet in almost a decade, featured two financial bidders and
three rolling manufacturers.
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Bombardier, Hitachi and Siemens all tendered for the project
with Siemens winning the rolling stock contract.
On the financing side, Angel Trains and HSBC Rail submitted
bids, and the latter was successful.
Rail finance sources said the UK’s other Rosco, Porterbrook
Leasing, was not involved in the process because it faces liquidity
issues, and its parent Santander continues to look for a buyer for
the company.
It is believed that NAB Capital is working with HSBC Rail to
finance the rolling stock, which will be leased to train operating
company First ScotRail, whose franchise runs until 2014. An NAB
Capital spokesperson declined to comment.
Transport Scotland said it has appointed Grant Thornton as
financial adviser and Steer Davies Gleave as technical adviser,
following which both organisations sub-contracted to Quasar
Associates, a rail finance lease adviser, for the provision of
commercial advice.
According to Transport Scotland, the procurement process was
managed by First ScotRail under the Utilities Regulations in a
process that started in August 2007 with the issue of a
Pre-Qualification Questionnaire to a list of train manufacturers
and financiers via the Achilles Link-up facility.
The pre-qualified participants were invited to tender for the
manufacture and supply of the new rolling stock units or the
financing in October 2007.
The closing date for bid submissions was set at January 21 this
year. Evaluation of the submitted bids culminated in the award of
contracts to Siemens and HSBC Rail on July 11. Contracts were
executed in late July.
Some transport finance sources have questioned how inclusive the
financing process for Scotland’s project has been, although
officials have stated the process was open.
A spokesperson for Transport Scotland told Leasing
Life: “First ScotRail utilised the Utilities Contracts
(Scotland) Regulations 2006. This enabled First ScotRail to
approach a range of potential financiers for the new trains via the
Achilles link-up, including but not limited to traditional rolling
stock leasing companies.”
“First ScotRail followed a Negotiated Procedure in this
procurement exercise.As in any procurement exercise the importance
of competition and value for money remained a priority and First
ScotRail was able to utilise the mechanisms available under
regulations and best practice to ensure that the most economically
advantageous solution was secured,” the spokesman said.
“With regards to the UK Competition Commission’s ongoing
investigation, this was at an early stage at the outset of this
procurement exercise and Transport Scotland has been engaged and
involved as appropriate as it has been taken forward,” he
added.
Anthony O’Connor
