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Lazio administrative court (TAR) issued a decree on 25 October which freezes the execution of a EUR 1bn IT outsourcing contract with Italian railway service Ferrovie dello Stato, according to sources close to Sirti and competitor Almaviva.
The auction for the contract was won by Sirti, as reported. Competitor Almaviva took Ferrovie to court, alleging irregularities in the assignment process of the contract. The matter was examined by the court, which postponed its decision on the suspension of the auction to 22 November, to allow additional time for further analysis. In the meantime, the court has postponed the execution of the contract.
The court also ordered Ferrovie to give Almaviva access to the procedure documents, and asked to review them as well, according to Almaviva.
An Almaviva spokesperson, expressed satisfaction with the outcome and said the company was confident that Ferrovie would allow an unfettered analysis of the facts.
Also Sirti expressed it was satisfied with the postponement, which had been requested by both parties.
The court decision could have an impact on the timeline of a public offer, due to be launched by PE fund Euraleo and other Sirti investors. It is not clear however, if there actually will be a delay.
Sirti announced on 4 October it had won a controversial EUR 1.15bn six-year contract from Ferrovie dello Stato, the Italian rail service, to provide IT and call centre services. After a complaint filed by Almaviva, a competitor company, with Lazio administrative court (TAR), the body suspended the contract until an investigation can be conducted on the way the contract was awarded, noting “grave” circumstances. The parties interested are now awaiting the 22 November hearing for a decision on the regularity of the contract assignment process.
Meanwhile, in industrial and financial circles people have tended to downplay the importance of the Ferrovie contract for Sirti, as it is deemed a favourite for another big contract in the next few years. The project is called NGN2, (Next Generation Network), undertaken by Telecom Italia.
The project involves the extension of optic fibre network throughout the country. But, there is no certainty the project will even get off the ground. However, the project is defined as ”huge”, with an investment by Telecom Italia of between EUR 6bn and EUR 10bn.
It has been suggested that Sirti is a natural candidate for the physical expansion of the optic fibre network, as it is the only company with the capability to undertake such a project. Further argument for Sirti to land the contract is that apart from being originally a spin-off from Telecom Italia itself, it has always worked with the Italian telecom company.
A Sirti spokesperson confirmed that if and when the project is undertaken, Sirti would be interested in participating.
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