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Supreme Court confirms decision allowing CP to proceed with a tender for 117 trains

The acquisition procedure for 117 trains for CP, the largest purchase in its history valued at 819 million euros, was awarded on November 28, 2023, to a consortium led by the French company Alstom for the supply of 62 urban trains and 55 regional ones. This project is funded by the Recovery and Resilience Plan (PRR) and faced legal challenges from competitors CAF and Stadler at the time.

According to a verdict dated June 26 and reviewed by Lusa, the challenge to the award began on November 27, 2023, following the announcement of the results of the international public tender for the acquisition of new rolling stock. The competitors filed a lawsuit at the Lisbon Administrative Court, seeking the annulment of the decision and the procedure documents.

However, the court of first instance granted CP’s request to avoid suspending the process while awaiting the final decision, which was later confirmed by the Southern Central Administrative Court.

The competitors then attempted to overturn this decision at the Supreme Administrative Court, claiming an error in judgment in assessing the interests involved. However, the STA ruled there was no basis to alter what was already decided.

In the recent ruling, the judges emphasized that the previous decisions “do not appear incoherent or irrational but are sufficiently and convincingly supported by the consistent case law of this Supreme Court.”

The competitors argued that suspending the tender would not harm the public interest, as there were “alternative funding options” available to meet the investment goals, but the Supreme Court rejected this argument.

“The potential competition from other funding sources cannot be sustained as an argument to dismiss the usefulness of the European funds, which the decision presents as a foundation,” reads the verdict, further stating that this argument “is not even clearly and unequivocally presented.”

The court considered that the reasons for lifting the suspension are “sufficiently addressed” by case law and based on facts that do not justify further reassessment. It also highlights that “the legislative change approved by Law No. 43/2024, dated December 2, advocates in favor of the thesis endorsed by the instances regarding the prevalence of the public interest in safeguarding the execution of European funding.”

“Another level of review and consideration of the interests at stake” would not reveal, according to the STA, “an effective active recursive interest,” which is why the attempt to overturn the previous decision was rejected.

With this decision, CP can resume the proceedings of the largest tender in its history, which includes the purchase of electric trains for suburban and regional services, with funding planned under the PRR.

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