SERBIA: ZS has selected Russian firm Metrovagonmash to supply 10 two-car diesel multiple-units for regional and suburban services. These will form the first of three batches of rolling stock being procured to modernise the national railway's passenger fleet.

The order is being partly funded by a SFr43m loan from Eurofima, and the trains are expected to enter service from 2012.

Other bids had been received from CAF of Spain, TZV Gredelj from Croatia and Slovak firm ZOS Vrútky. Winning the contract 'convincingly demonstrates the relevance of Russia's railway technology, its ability to compete with the products of major manufacturers from the EU countries', said Andrei Andreev, CEO of Metrovagonmash's parent company Transmash Holding.

Metrovagonmash has produced 62 DMUs for Russia, Ukraine, Lithuania, Hungary and the Czech Republic, and is currently delivering 39 three-car RA-2 sets to RZD for Moscow and the North Caucasian Railway.

• On February 25 the ZS board confirmed it was to call tenders for two further batches of trains to be supplied by 2013. Another 10 DMUs are to be acquired, partly funded using a €22m loan from the Spanish government which is also providing €15m for the modernisation of 30 coaches. In addition, 30 inter-city electric multiple-units are needed to release locomotives for use on freight services. These will be partly funded using a €100m loan from EBRD.