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Sweden Procurement News Notice - 94707


Procurement News Notice

PNN 94707
Work Detail Trafikverket has cancelled the procurement process for contracts in Vagnhärad and Skavsta located on the Sweden’s East Link project (Ostlänken) due to the latest cost estimation which is higher than expected and exceeds budget. The invitation to tender for the Vagnhärad and Skavsta contracts was published in September 2024 and the plan was to sign contracts in early 2026. “Since the procurements ended, we have analysed the projects in more depth and realised that they are more challenging than we previously assumed. Our current requirements mean a higher cost than we had budgeted for,” the Programme Manager, Magnus Sjöberg, said. To ensure implementation within given budget limits, the projects will now review cost-driving requirements before the procurements are re-advertised. Trafikverket will soon initiate market dialogues to capture views from suppliers and give them the right conditions to submit bids in the upcoming revised procurement for the contracts. “We need the involvement of suppliers to be able to carry out our mission and the early dialogue with them is crucial to meeting future challenges. Our assessment is that canceling the procurements will not affect the completion date for the construction of the contracts and the Eastern Link in its entirety, that is, in 2035,” Magnus Sjöberg explained. A new call for applications will expire in September 2025 and a complete request for proposals will be sent later in the autumn. The contracts involve consultancy services, design and construction work for a total of approximately 60 km of double-track railway on embankments, bridges and tunnels. The contracts extend between Gerstaberg and Skavsta and pass through the municipalities of Södertälje, Trosa and Nyköping. The Vagnhärad contract also includes the construction of a new transport hub. Both routes will be in operation in 2035. The procurements are the starting point for the first so-called ECI contracts (early contractor involvement) at the Swedish Transport Administration. The goal of this scheme is to create efficient construction with the right quality through early supplier collaboration and on the basis of clear contract conditions that also reduce costs and the climate impact. ECI is a procurement strategy where the supplier is involved in the project at an early stage of planning and development. The aim is to benefit from the supplier’s expertise and experience to improve the project’s implementation and results. Six of the eleven contracts within the Eastern Link programme are based on the ECI concept. These contracts have an implementation period of 8-10 years, and the procurement procedures are each worth around SEK 10 billion (EUR 924.5 million). Sweden’s East Link project consists of a total of 11 projects and contracts, divided into stages A, B and C, with Vagnhärad and Skavsta being part of the phase A from Järna to Nyköping/Skavsta. Recently, Implenia won a EUR 135 million contract to build an 8 km double track section connecting Nyköping and Skavsta town centres. The construction work for the entire line will be carried out until 2034 and after all tests will be successfully completed, the line will enter operation in 2035. Ostlänken crosses Stockholm, Södermanland and Östergötland counties and five municipalities. The East Link project involves the construction of a 160 km double track line of which 25% will be built on bridges or in tunnels. The project also covers the construction of five new transport hubs in Vagnhärad, Nyköping, Skavsta, Norrköping and Linköping. The total cost of East Link was estimated at SEK 91 billion (EUR 8.4 billion) and includes an 8-km tunnel one of the longest in Sweden which will be built at Kolmårdskogen The new East Link railway connects Järna and Linköping, just south of Södertälje and will allow trains to run at a maximum speed of 250 km/h, enabling more trains, sustainable transport, smoother and safer journeys and larger labour market regions. Currently, the existing tracks are crowded, and their expansion will answer transport demand for both passengers and goods. The project is part of Sweden’s strategy to shift road transport towards railways as well as to reduce maintenance costs. In the next decade, Trafikverket will modernise and expand country’s transport infrastructure with an estimated investment of SEK 799 billion (EUR 74 billion).
Country Sweden , Northern Europe
Industry Energy & Power
Entry Date 03 Apr 2025
Source https://www.railwaypro.com/wp/sweden-cancels-east-link-tenders/

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