Many Budapest Public Transport Suppliers Cancelling Contracts, Renovation of M3 in Jeopardy
- 13 May 2022 11:59 AM
- Hungary Around the Clock
Some 36 suppliers to Budapest transport company BKV reneged on contracts by the end of April, citing increased costs or supply problems, and the company is concerned that the extra claims by contractors could amount to tens of billions of forints, Népszava learned.
After renegotiations with struggling suppliers, BKV considers it a great success if price increases can be kept below 10%.
However, the majority of suppliers are asking for price hikes of 30-50%, due to the soaring prices of raw materials and the war in Ukraine.
As a result, the renovation of the M3 underground line may be delayed.
Swietelsky Vasúttechnika, which is contracted to refurbish the line, has already told BKV in recent weeks that the Russian-Ukrainian war may affect its work, in part because of the impossibility of replacing steel products previously supplied from Ukraine, along with rising transport costs. However, Swietelsky has not yet filed its new claims.
The situation is even more difficult for the Russian-built metro trains on the M3 metro line, because of a lack of spares.
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