Alstom asks court to meddle in railway contract

3rd November 2006, Comments 0 comments

PARIS, Nov 2, 2006 (AFP) - The French engineering group Alstom has asked a Paris administrative court to suspend a huge contract awarded by the national railway SNCF to Canadian rival Bombardier, the railway said Thursday.

PARIS, Nov 2, 2006 (AFP) - The French engineering group Alstom has asked a Paris administrative court to suspend a huge contract awarded by the national railway SNCF to Canadian rival Bombardier, the railway said Thursday.

Alstom Transport "filed a request with the Paris administrative tribunal concerning the deal" worth EUR 2.7 billion to build commuter trains for the Paris suburban network, an SNCF spokesman said.

"The group is asking for a suspension", he added.

A massive program to renovate the suburban system is expected to cost almost EUR 4 billion, with Bombardier providing the rolling stock.

An initial stage that would include 172 new trains was estimated at EUR 1.85 billion, of which the Canadian group would be paid 1.35 billion.

An option provided for an additional 200 trains that would be delivered starting in 2016.

Alstom, which had been tipped as a major sub-contractor in connection with the deal, was available for comment late Thursday.

All of the trains awarded to Bombardier were to be built in France, according to Jean-Paul Huchon, a member of the opposition Socialist party who heads the council and transport authority for the region around Paris called Ile-de-France.

A spokesman for Bombardier said on October 25 that 85 percent of cars would be made in France and the head of Bombardier transport division Arne Navari said that Alstom would be included in a "very significant way" in the order.

Copyright AFP

Subject: French news

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