Brazil Sanctions Alstom;Argentina Bid in Jeopardy

The French capital trains manufacturer will not be able to contract with the State of the neighboring country for the next 5 years,a strong blow to the firm that is competing in the tender for the Buenos Aires subway by the French RATP.

By a decision of the Administrative Council of Economic Defense (CADE), the Government of Brazil fined with about 130 million reais (about 35 million dollars today), and imposed a ban of five years to contract with the federal, provincial states and municipal.

According to the agency for the defense of competition in that country, Alstom led a “cartel” of companies that harmed at least 26 public tenders in the period 1999-2013.

The sanction of the Brazilian Government constitutes a strong economic blow but also of reputation for the company, at a time when it is competing for the tender of the Buenos Aires Subway, by the hand of the French RATP.

The Paris Metro operating company would had landed in Argentina for the tender of the Buenos Aires subway with serious inconsistencies in its corporate formation and business guarantees, to which the problems of its partner Alstom are now added in Brazil.

At the local level, in January 2008, the then president Cristina Fernández de Kirchner, in the hands of her secretary of Transportation, the current prisoner Ricardo Jaime, awarded her the suspected project of the Bala Train, which would link the cities of Buenos Aires and Rosario, to a consortium headed precisely by Alstom.

The project called Cobra was embodied in Resolution 324, dated May 8, 2006. At that time, the Ministry of Transportation incorporated the work for integral electrification, civil works, road infrastructure, signaling and communications, maintenance and provision of material Rolling for the High Speed ​​railway service on the Buenos Aires – Rosario railway corridor.

It was September 2008, when the national budget law included the Bala Train. Time when he indicated that 60 million were allocated for the construction of the Buenos Aires-Rosario-Córdoba (TAVE) railway corridor; 485 million in 2009; 372 million, in 2010, and the rest (without specifying terms), for 10,110,415,143 pesos. ” But the project was nowhere.

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