Consortium Led by D’Agostino Secures €176M Contract for Major Palermo Tram Network Expansion

PALERMO, ITALY – A consortium led by D’Agostino Angelo Antonio Costruzioni Generali has won the contract for the design and construction of a significant extension to the Palermo tram network, a project with a total investment value approaching €150 million. The winning bid, valued at over €176 million, was selected by the Municipality of Palermo for its superior technical quality and a commitment to reduce the project timeline by 210 days.

The Municipality of Palermo has officially awarded the contract for the first functional section of the tram network’s second phase to a consortium comprising D’Agostino Angelo Antonio Costruzioni Generali, E.LU.S., and Neocos. The award covers the design and build of extensions E1, E2 South, and F, alongside the construction and modernization of the Mongibello and Galatea interchange parking lots. The consortium’s proposal was deemed the most economically advantageous tender, achieving a total score of 91.426 out of 100 points, with a particularly strong evaluation for its technical offer (68.840 points).

The financial structure of the deal highlights the project’s scale. The winning bid included a significant 19.2% discount on the base price. The total project cost, approaching €150 million, is meticulously allocated, with approximately €142 million dedicated to the physical construction works. A further €1.39 million is designated for the detailed technical design phase, and €148,000 is set aside for crucial environmental impact monitoring. An additional €6.1 million, covering security and safety costs not subject to contractual discounts, plus applicable taxes, solidifies the project’s substantial investment in the city’s infrastructure.

This contract is a cornerstone of the wider “Palermo Tram System – Phase II” program, an ambitious urban mobility initiative valued at over €520 million. This larger program also includes significant investment in rolling stock to service the expanded network. Thirty-five new trams have already been contracted as part of this program, with an additional four vehicles being financed through European funds in a separate package worth over €17 million. The consortium’s commitment to accelerating the construction timeline by 210 days, if successful, will deliver the benefits of this integrated transport system to Palermo’s residents several months earlier than anticipated.

Key Takeaways

• Major Infrastructure Investment: The project represents a total investment of nearly €150 million, signaling a strong commitment to enhancing public transport in Palermo.
• Efficiency and Value: The winning consortium was selected not just on price, which included a 19.2% discount, but also on a high-quality technical proposal and a pledge to shorten the construction period by seven months.
• Integrated Urban Mobility: The extension is part of a comprehensive €520 million+ plan that includes not only new lines but also modernized park-and-ride facilities and a fleet of new trams.

Editor’s Analysis

The awarding of the Palermo tram extension contract is a textbook example of modern European urban transport strategy in action. The tender’s focus on the “most economically advantageous” bid, weighing technical merit heavily alongside price, reflects a mature procurement approach that prioritizes long-term quality and operational efficiency over simple cost-cutting. The inclusion of integrated park-and-ride facilities underscores a holistic vision for reducing city-center congestion by making public transport a more seamless choice. For the global rail market, this project reinforces the trend of cities leveraging national and EU funding to build out light rail networks as a central pillar of their sustainability and mobility goals. The significant time-saving commitment from the D’Agostino-led consortium will be closely watched, as delivering complex urban rail projects ahead of schedule is a key performance indicator for the entire industry.

Frequently Asked Questions

Who won the contract for the Palermo tram extension?

A consortium led by D’Agostino Angelo Antonio Costruzioni Generali, together with partners E.LU.S. and Neocos, secured the contract.

What is the value of the contract and the overall project?

The winning bid from the consortium is valued at over €176 million. The total cost of this specific project section (Functional Section I.1) is close to €150 million, which is part of a larger €520 million expansion program.

How will this project be completed faster than originally planned?

The winning consortium included a significant commitment in its bid to shorten the works duration by 210 days compared to the maximum period allowed in the tender, potentially finishing the project seven months early.