{"id":464427,"date":"2022-08-31T11:42:30","date_gmt":"2022-08-31T10:42:30","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=464427"},"modified":"2022-08-31T12:34:01","modified_gmt":"2022-08-31T11:34:01","slug":"firms-agree-to-withdraw-hs2-bid-amid-watchdog-concerns","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/bouygues\/firms-agree-to-withdraw-hs2-bid-amid-watchdog-concerns-31-08-2022\/","title":{"rendered":"Firms agree to withdraw HS2 bid amid watchdog concerns"},"content":{"rendered":"

Bouygues and Equans have agreed to withdraw one of their bids for work on a \u00a3300m HS2 overhead-cable contract following concerns raised by the Competition and Markets Authority (CMA) in light of their forthcoming merger.<\/p>\n

Last November,\u00a0Bouygues struck a \u00a36bn deal to buy Equans<\/a>, the construction and services business owned by Engie, including the latter\u2019s UK Regeneration and facilities-management arms.<\/p>\n

This triggered the CMA to launch a probe of the merger in May<\/a> this year with subsidiaries of the two firms competing to supply catenary systems to the mega rail project.<\/p>\n

HS2\u2019s shortlist for the \u00a3300m work,\u00a0announced in October 2021<\/a>, included Bouygues-owned Colas Rail and a joint venture of Equans-owned SPL Powerlines, Keltbray and French engineering specialist Ineo.<\/p>\n

The CMA said in July that bids coming under the control of the merged firm could make the remainder of the tender process less competitive<\/a>, leading to a higher-cost final contract for HS2 and eventually the taxpayer.<\/p>\n

But the firms have now agreed with the CMA to pull one of their bids pending an independent third-party assessment to determine which is more \u201ceconomically advantageous\u201d for HS2.<\/p>\n

French independent engineering company Ingerop, which has extensive experience with high-speed rail projects and had revenues of approximately \u20ac272m (\u00a3234m) in 2021, will lead the assessment and has been approved by the watchdog.<\/p>\n

The CMA has said that the independent assessment will resolve the issue in a \u201cclear-cut manner\u201d and that it does not have \u201cany material doubts\u201d about the solution, with Ingerop able to use a pre-existing evaluation methodology.<\/p>\n

However, the agreed resolution could potentially be bad news for Keltbray and Ineo, which were bidding for the contract in a JV with Equans.<\/p>\n

In a statement responding to the proposals, the watchdog said: \u201cThe CMA currently considers that the proposed undertakings are\u2026 appropriate to remedy, mitigate or prevent the competition concerns identified\u2026 and form as comprehensive a solution to these concerns as is reasonable and practicable.\u201d<\/p>\n

China Railway Electrification Engineering Group and a JV comprising Balfour Beatty, ETF and TSO were also on the shortlist<\/a>.<\/p>\n

Works on the catenary system will cover 589km of track, including 62 viaducts, 293 bridges and 15 tunnels.<\/p>\n

The successful bidder will be expected to work closely with HS2\u2019s other rail-systems suppliers to ensure the integration of its design.<\/p>\n

Bouygues and Equans were approached for comment, along with Keltbray. HS2 declined to comment.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bouygues and Equans have agreed to withdraw one of their bids for work on a \u00a3300m HS2 overhead-cable contract following concerns raised by the Competition and Markets Authority (CMA) in light of their forthcoming merger. Last November,\u00a0Bouygues struck a \u00a36bn deal to buy Equans, the construction and services business owned by Engie, including the latter\u2019s …<\/p>\n","protected":false},"author":129285,"featured_media":464445,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[530,39314,2164,57171,526],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n