Alstom Wins Bahia Metro Contract Despite Past Cartel Convictions
Bahia government awards R$ 632 million rail contract to firm previously fined for bid-rigging.
1Contract Award Controversy
The Bahia state government awarded a R$ 632 million contract to Alstom Brasil Energia for the production of ten metro trains. This decision follows the controversial revocation of a previous, more affordable tender won by the Chinese firm CRRC Changchu. The new agreement significantly increases the project cost for public coffers.
2Historical Cartel Convictions
Alstom was previously condemned by the Administrative Council for Economic Defense (CADE) in 2019 for anti-competitive practices. The company was identified as a key player in a scheme involving price-fixing and bid manipulation across 26 public contracts. These illicit activities spanned multiple states, including São Paulo, Rio Grande do Sul, and Minas Gerais.
3Financial and Legal Penalties
Following the 2019 ruling, CADE imposed a fine of R$ 128 million on Alstom and prohibited the company from participating in public tenders for five years. The firm challenged these administrative sanctions in court, securing a judicial injunction in 2020 that currently suspends the enforcement of the original penalty and restrictions.
4Cost Comparison Analysis
The initial tender process, which took place earlier in 2025, had established a cost of R$ 490 million for the metro train procurement. By revoking that process and awarding the contract to Alstom in October, the Bahia government is now paying an additional R$ 142 million for the same equipment supply.
5Company Compliance Stance
In response to inquiries regarding its past conduct, Alstom maintains that it operates under a robust compliance program. The company asserts its commitment to high ethical standards in all business dealings. They emphasize that the 2020 judicial injunction allows them to continue participating in public bids despite previous administrative findings.
6Governmental Silence
The administration of Governor Jerônimo Rodrigues, affiliated with the PT party, has not provided a formal statement regarding the selection of Alstom. The lack of transparency surrounding the decision to cancel the cheaper Chinese bid has raised questions about the procurement criteria and the prioritization of public funds in Bahia.
7Broader Infrastructure Impact
The metro system in Salvador and Lauro de Freitas serves as a critical transportation artery for the region. Delays or cost escalations in rolling stock procurement directly affect urban mobility and public service delivery. Ensuring competitive and transparent bidding is essential for maintaining the financial sustainability of such large-scale infrastructure projects.
8Future Regulatory Oversight
This case highlights the ongoing tension between administrative antitrust rulings and judicial appeals in Brazil. Observers are monitoring whether the current injunction will hold or if future legal developments will impact Alstom's ability to fulfill the contract. The situation underscores the complexities of managing public procurement involving firms with histories of misconduct.
Original article: Folha – Poder — Alstom Wins Bahia Metro Contract Despite Past Cartel Convictions