Spanish train maker Talgo and Britain’s HS2 have reached an out of court settlement after the Spanish firm accused HS2 of botching a procurement process. However, the Department of Transport will not reveal what Talgo settled for or how much legal proceedings cost. The contract was initially billed as worth £2.8 billion.
A hearing had been set for July but HS2 confirmed on June 28 it had reached an out of court settlement with the Madrid-listed manufacturer.
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.”
Jon Veitch, Talgo’s managing director, said, “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.”
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