To escape possible proceedings that Construcciones y Auxiliar de Ferrocarriles (CAF) could bring against Latvia, lawyers of the state-owned Passenger Train (PT) suggest setting up as sister company.

Its goal would be to organize another tender.

Under the new tender regulations, Latvia would purchase less trains and split the remaining EU funds on reconstruction of trains stops and powerlines.

Similarly, the new contract would abandon train maintenance by CAF, reports TV3 broadcast Neka Personiga.

The Transport Ministry and PT have already been approached by participants of the previous tender – Swiss companies Stadler and Alstom, as welll as the German Siemens.

Next week, the PT Board will hold discussions with representatives of the three companies.

Meanwhile, no one seems to be held responsible for the previous violations that could make the government face major financial consequences. PT ex-chairman, Nils Freivalds, who signed the contract with CAF was harshly criticized by the Prime Minister, Valdis Dombrovskis, and left the office. But it did not take long for him to find another job – he is now an expert at AS Zasulauks, which is by the way controlled by PT.

CAF has already met with the parliamentary groups of the ruling coalition. The meetings were arranged by Andris Berzins, Riga Railcar Factory’s consultant and former MP.

A week ago, the concern established a subsidiary, CAF Latvia, which has already obtained a 17 million euro loan from Danske bank. The company expects to use the amount to renovate train depots.

As reported, CAF, which won a tender organized by PT, has finally run out of patience.

The company has implied quite clearly that if Latvia keeps delaying the project, Stockholm court will launch proceedings.

Latvian Transport Ministry assumes that the company objects to PT board member, Aigars Stokenbergs – a former politician and minister.

Since he is in office, the company has visited Latvia five times, but the time spent at the negotiations table does not exceed five hours.

CAF thinks this signals that Latvia is not willing to find a mutually acceptable solution.

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