As Rail Baltica main line design and design supervision procurement procedures enter the final stage, we are reflecting on the tendering results and re-evaluating our approach and requirements to identify any potential improvement areas. From summer 2019 onwards, Rail Baltica main line design services will be ongoing already in 6 sections out of 11, covering nearly half of the total track length.
RB Rail AS procurement processes are based on the Rail Baltica Common Procurement Standards and Guidelines, introduced to ensure fairness and transparency, and to guarantee the best results. One of our aims is to continuously develop best practices and ensure the application of the best possible quality and overall value for money balance. In this article you will learn about the competition and prices in the first six design and design supervision tenders, completed by June 2019.
Finalised Tenders
By June 2019, RB Rail AS hs announced the winners in 6 out of 11 design and design supervision tenders, covering 409 km of the Rail Baltica railway main line. Four of those tenders have already been finalised with signed contracts, with the next two contracts following shortly. The signed contracts include two sections from Kaunas to the Lithuanian/Latvian state border and two sections in Estonia, spanning from Tallinn to Pärnu. All four contracts have been awarded to the Spanish railway engineering company IDOM Consulting, Engineering, Architecture S.A.U.
Market Competition
The Rail Baltica design and design supervision tenders, by now, have received 44 applications from international and local companies and resulted in 22 financial proposals. On average, each tender received 3.7 proposals with exception, the section Tallinn-Rapla (Estonia) receiving five proposals and main line section through Rīga receiving two proposals.
Price Statistics
The average winning price per kilometre of the railway was 153 775 EUR, with prices being highest for the design sections in Riga, amounting to 210 912 EUR per kilometre. While balancing the price and quality ratio in the Rail Baltica design and design supervision procurement procedures, RB Rail AS has achieved overall competitive prices for the requested services (see the table below).
| ID No | Procurement title | Length of the railway line section | Indicative infrastructure objects | Winning price EUR without VAT | Selected tenderer |
| RBR 2017/27 | Design and design supervision services for the construction of the new line from Pärnu to Rapla | 71 km | 4 railway bridges 13 road viaducts 9 railway viaducts 9 animal crossings | 6 802 522,00 | IDOM Consulting, Engineering, Architectue S.A.U. |
| RBR 2017/28 | Design and design supervision services for the construction of the mainline section through Rīga | 56 km | 4 railway bridges 14 road viaducts 13 pedestrian crossings 16 railway viaducts 4 animal crossings | 12 989 200,00 | Group of suppliers: IDOM, Consulting, Engineering, Architecture S.A.U., Ingeniería y Economía del Transporte SME MP S.A. |
| RBR 2017/29 | Design and design supervision services for the construction of the new line from Kaunas to Ramygala | 78 km | 4 railway bridges 7 road viaducts 11 railway viaducts 3 animal crossings | 6 979 893,00 | IDOM Consulting, Engineering, Architecture S.A.U. |
| RBR 2018/10 | Design and design supervision services for the construction of the new line from Tallinn to Rapla | 48 km | 2 railway bridges 9 road viaducts 11 railway viaducts 4 animal crossings | 11 363 907,96 | IDOM Consulting, Engineering, Architecture S.A.U. |
| RBR 2018/11 | Design and design supervision services for the construction of the new line from Ramygala to Lithuanian/Latvian state border | 91 km | 3 railway bridges 14 road viaducts 19 railway viaducts 4 animal crossings | 7 968 873,14 | IDOM, Consulting, Engineering, Architecture S.A.U. |
| RBR 2018/12 | Design and design supervision services for the construction of the new line on the section Vangaži – Salaspils – Misa | 67 km | 11 railway bridges 17 road viaducts 16 railway viaducts 3 animal crossings | 12 024 529,70 | Group of suppliers: Egis Rail S.A., DB Engineering & Consulting GmbH and Olimps Ltd |
What’s next?
Going forward with the next tenders, RB Rail AS is planning to update the design and design supervision contract conditions. RB Rail AS is continuously seeking ways to improve Rail Baltica procurement procedures and best procurement practice with a view to widen the market and to improve long-term contract management. As a result, currently RB Rail AS is considering to update contract conditions, including the following (subject to confirmation by the respective procurement commissions):
- Introduction of advance payment option against advance payment guarantee;
- Fitness for purpose requirement to be replaced with a requirement to comply with national laws;
- Introduction of balanced risk sharing approach and risk allocation conditions;
- Re-instating FIDIC standard of care principle;
- Removal of retention money conditions;
- Increase of the contract performance security (performance bond_ proportion and introduction of phased performance bond release conditions;
- Improved balance of liability for 3rd party delay;
- Introduction of intellectual property ownership right transfer at reimbursement;
- Introduction of several procedural improvements, e.g. introduction of RB Rail AS decision deadlines, programme submission order, and other improvements.
Following the completion of all due processes, the updated design and design supervision contract conditions are anticipated to be applied towards the Estonian section (Pärnu-Estonian/Latvian state border) and remaining two design procurement procedures in Latvia (South and North sections) to be launched in the summer 2019. The updated FIDIC White Book contact template will be submitted to the qualified tenderers during the second stage of the procurement procedure (proposal submission), following the qualification stage.