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1st March, 2019

BKV sues Russian subway car maker

Budapest public transport company BKV took legal action against Russian company Metrowagonmash in February, seeking Ft 6 billion in damages, according to a written answer provided by mayor István Tarlós to councillor József Gál.

Metrowagonmash upgraded the city’s Soviet-made metro carriages, but the doors malfunctioned when they were put into service.

All upgraded Russian metro carriages were removed from traffic on orders from the transport authority in June 2017.

Index has learned from its sources that the BKV would have agreed to a Ft 2 billion penalty, but the Russian company considered that excessive. Therefore, the BKV took legal action and demanded the full sum of the penalty, nearly Ft 6 billion, almost 10% of the entire value of the contract.

Metrowagonmash was ready to provide air conditioning for the carriages in return for cancelling the penalty but the BKV rejected this offer as too difficult and costly.

Under a contract signed in 2015, Budapest agreed to pay Metrowagonmash Ft 69 billion for 222 upgraded metro carriages. The carriages were on average 40 years old.

Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).

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