08.03.13
Great Western bidders take legal action against DfT
The four TOCs who spent millions preparing their bids for the now-scrapped Great Western rail franchise competition are beginning legal proceedings against the Government for compensation.
FirstGroup, Stagecoach, Arriva and National Express each spent around £10m to submit their bids for the franchise, which was called off following the West Coast Main Line chaos.
Bidders for the West Coast contract are being compensated, unlike on Great Western, and the four TOCs suggest this is unfair.
In January, the DfT said: “In keeping with the relevant invitations to tender, which made clear that bidders are responsible for their own costs, the Secretary of State does not believe it would be appropriate to reimburse bidders.”
There will be a ‘stay’ in legal proceedings until the end of March, the BBC has reported.
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