Talgo wins 'deal of the century' to build 30 fast-track trains for €1.5bn

Talgo offered the best price, reducing the initial estimate by 28.3% to a maximum of just under €1.1 billion for the first 15 trains to be built and their maintenance for 30 years.

The deal includes the option of building a further 15 trains in batches of five, and a possible contract renewal of 10 years.

If RENFE goes for this, the amount paid to Talgo will be just under €1.5bn – a reduction of 44% on the maximum quoted price of €2.64bn for 30 trains with a 40-year maintenance contract.

This is the biggest public works contract in RENFE's history, and bids came from the Spanish firm CAF, the French company Alstom, the Germany corporation Siemens, as well as Talgo, although the fifth bidder, Canadian firm Bombardier, fell at the first hurdle when the technical proposals were evaluated.

Talgo's offer for supply and maintenance came to €337.1 million and €448.9m respectively for the first 15 trains over 30 years, which translates to €22.5m per train and €2.49 per kilometre travelled in keeping them on the track.

CAF's offer was for €870m in total; Siemens' came to €1.07m, and Alstom was not far off the maximum, at €1.096m.

The new high-speed trains are being built to meet increasing demand and the opening of new AVE lines, as well as meeting the EU requirement of opening up rail travel trade to competition from the year 2020.