FSR: Commission approves Lisbon metro project bid subject to conditions
The Commission has authorised Metropolitano de Lisboa to proceed with awarding the contract for the design and construction of Lisbon’s “Violet” metro line, subject to conditions under the Foreign Subsidies Regulation (FSR).
The decision follows commitments by a consortium led by Mota-Engil to address concerns over distortive foreign subsidies identified during the Commission’s in-depth investigation. This thus constitutes the first final decision with binding conditions following an in-depth public procurement investigation under the FSR.
In particular, the consortium agreed to replace CRRC Tangshan Rolling Stock with Pojazdy Szynowe PESA Bydgoszcz Spółka Akcyjna (‘PESA’), ensuring a level playing field in the procurement process. This allows the contracting authority to move forward with selecting the most economically advantageous offer, provided all commitments are fully respected.
The Commission found that the initial participation of the subsidised subcontractor had given the consortium an unfair competitive advantage, distorting competition in the EU internal market. By accepting the proposed remedies, the Commission concluded that the distortion has been effectively removed, enabling the consortium to remain in the tender. While the final award decision rests with Metropolitano de Lisboa, the Commission will monitor compliance with the commitments.
For more information, see the Commission’s PR.