Portuguese Mota-Engil consortium loses second supplier for Purple Line
2026-07-09 11:59
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en.Wedoany.com Reported - The Mota-Engil consortium needs to find a third supplier for the light rail vehicles of Lisbon Metro's Purple Line, after two candidate suppliers successively withdrew. According to ECO, following the rejection of CRRC by Brussels, Polish company PESA has also abandoned the contract. The consortium currently has two other European suppliers to choose from.

PESA had been designated by the consortium comprising Mota-Engil, Zagope, and Spie Batignolles as an alternative to CRRC. Previously, the European Commission launched an in-depth investigation into the relevant arrangements in November last year under the Foreign Subsidies Regulation (abbreviated as RSE).

Brussels confirmed that the subsidies received by the Chinese supplier gave the consortium an "unfair competitive advantage, to the detriment of other bidders participating in the tender and the integrity of the EU internal market."

The main competitor is a group composed of Spain's FCC, Contratas y Ventas, Comsa, and Fergrupo, whose bid of €630 million has exceeded the base price. This group may be dissatisfied with the Mota-Engil consortium's victory. Additionally, a third consortium participated in the bidding, including Teixeira Duarte, Casais, Tecnovia, EPOS, Somafel, and Jayme da Costa, with a bid of €716.09 million.

After CRRC was replaced, the European Commission approved Lisbon Metro's contract for the construction and design of the Purple Line. However, the issue of PESA's withdrawal subsequently arose. According to ECO, Mota-Engil can choose to activate two other European suppliers.

Only after the supplier for the 12 light rail vehicles is designated can the tender evaluation jury approve the award. The line will connect Odivelas and Loures, with a total of 17 stations.

As stated by the European Commission, it is ultimately up to Lisbon Metro to decide whether to award the contract for this new light rail line connecting Loures and Odivelas. The winning party submitted a total bid of €598.9 million. This state-owned enterprise must assess whether this bid (now including the new European subcontractor) "meets all technical and quality requirements specified in the tender documents."

During a parliamentary hearing on April 7, Infrastructure Minister Miguel Pinto Luz warned that the Purple Line would proceed regardless of Brussels' decision. From a legal perspective, new developments are expected in this case. According to MLex, a publication specializing in competition law, the unsuccessful bidder in this tender may challenge the award, arguing that the replacement of the supplier is illegal and that the relevant bid should be excluded.

Due to delays, the Purple Line has withdrawn from the Recovery and Resilience Plan (PRR), as has the Red Line—the latter remains unawarded due to a lack of financing. The contracts with Mota-Engil and Spie Batignolles were signed in March 2024.

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