Bucharest subway may have to reduce operations amid unpaid bills

French group Alstom Transport warned that it might have to reduce the volume of services delivered to Bucharest subway operator Metrorex because of overdue unpaid bills worth RON 132 million (EUR 28 mln). The oldest unpaid bills are from last October.

The situation might result in reduced operations of the Bucharest subway system, according to Alstom representatives, local Economica.net reported.

"Metrorex will have [by law] to provide a third of the public service and will notify us what it wants, in order to ensure this," said said Alstom transport manager Gabriel Stanciu. He added that the company may provide the needed services or stop working altogether if the situation continues.

Metrorex and Alstom representatives had a meeting on Thursday afternoon and agreed that the Bucharest subway will continue to function normally next week. Metrorex agreed to pay a RON 25 mln tranche as soon as possible and the remaining sum by the end of this year.

Metrorex closed the maintenance program with Alstom in 2014 for a total value of EUR 240 million. The contract included the maintenance of old trains and new ones, once the warranty period provided by the producer expires. The current contract expires at the end of this year and Metrorex hasn’t launched the tender for a new contract yet.

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