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HS2 Ltd has reached an out of court settlement with Talgo after the train manufacturer launched legal action against the project promoter in relation to its train procurement process, NCE can reveal.
Talgo launched its legal challenge after losing out in its bid to provide HS2 Ltd with rolling stock. The challenge related to the tender process in particular.
At an application hearing in the Technology & Construction Court, Justice O’Farrell said she was “satisfied” that the delay that would result from a later trial was “a good reason” to grant the expedition, ruling that the preliminary issues proposed by the parties would be tried at a hearing to start on 5 July.
However HS2 Ltd has now confirmed that the proceedings have been settled ahead of the hearing.
An HS2 spokesperson said: “Following the mutual resolution of proceedings between HS2 and Talgo, HS2 is grateful for Talgo's participation in the rolling stock procurement and wishes Talgo all the best with its future endeavours, both in the UK and internationally.
“HS2 looks forward to announcing its contract award decision for Britain’s new high speed trains in due course."
Talgo managing director Jon Veitch added: "After proceedings were commenced in March 2021 by Talgo against HS2 concerning the rolling stock manufacture and maintenance procurement for HS2, the parties have agreed to a mutually acceptable resolution of these claims.
"Talgo remains fully committed to the UK rail industry and wishes HS2 well in delivering this significant and important project.”
Talgo's challenge came after HS2 Ltd informed the company it would not continue to stage five of the procurement process in January. Following this, in March and April, Talgo issued proceedings against HS2 Ltd.
There were three preliminary issues to be discussed.
The first was the allegation that HS2 Ltd unlawfully permitted some tenders to proceed with changes having been made to the tenders and/or qualifications made to the bids. The second claim was that HS2 Ltd acted in breach of its obligations in relation to the acquisition by Alstom of Bombardier during the procurement process (both were tenderers). Finally, Talgo claimed the procurement has been impaired by apparent bias.
These claims were all disputed by HS2 Ltd.
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It would be extremely instructive to know if HS2 was obliged to throw yet more taxpayer’s money to cover up their incompetence. I expect the NCE to put in a FoI request to that effect please. There is a complete disregard for financial responsibility at the heart of HS2