NYAB: Signing of Uppsala Tramway contract delayed

Translation: Original published in Finnish on 11/14/2024 at 7:22 am EET.

The company announced on Wednesday that it had been informed that another participant in the tender for the Uppsala Tramway project had filed a complaint with the administrative court in accordance with the Swedish Public Procurement Act. The complaint follows Uppsala Municipality's decision to select NYAB together with Azvi as general contractors for the Uppsala Tramway project and at the same time to award them an order for Phase 1 of the project (see our comments here). NYAB considers that the decision by Uppsala Municipality has been correct and does not expect the outcome to be changed. However, the complaint and the subsequent review process will delay the signing of the contract. The company will provide more information on the matter once the contract has been signed or if there are any changes to the original decision.

In our view, the filing of the complaint is not entirely surprising, given the considerable size of Phase 2 of the project (estimated at 5 BNSEK), although no decisions have yet been taken on it. Nevertheless, we believe that there is a high probability that the Phase 1 implementers will also be selected for Phase 2. Based on current information, we do not see much likelihood of a change in the decision, but we will wait for the final decision at this stage. The delay has no impact on our estimates or our view of the company, but we would see the potential win of the second phase of the project in particular as a significant contributor to our growth forecasts for the coming years (especially from 2026 onwards).