Latviski English По-русски
Monday 23.01.2017 | Name days: Strauta, Grieta

PV: modernization of diesel trains is not possible under current terms

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUBecause it is now certain that the company responsible for the realization of Pasažieru vilciens initiated diesel train modernization project – DMU vilcieni – has failed to comply with deadlines listed in the contract, PV has begun developing alternative scenarios that will be submitted to Transport Minister, explains PV.

De Facto programme of LTV had previously reported that PV would not receive the diesel trains, which cost EUR 22 million to modernize. This could mean the loss of EUR 13 million provided by the EU Cohesion Fund as well.

Two years have passed since PV signed the contract for the modernization of diesel trains for EUR 22 million. The first train should have been ready by February 2015. By now, Latvian passengers should have been provided with all six modernized diesel trains. Unfortunately, there are none.

The first of the modernized trains has begun its certification process in order to be approved for passenger transfer. Inspections are necessary for five other diesel trains, of which only some have been modernized. With that, DMU Vilcieni requires more time to finish its work. «If we could slightly increase the certification volume, everyone would have more confidence about safety. Either this or finishing the project in the first quarter of the next year,» – promises RVR Chairman Gatis Kamaruts.

Because of the delay in the project’s realization, PV will now have to look for EUR 13 million elsewhere. Latvian Finance Ministry will divide up the money provided by EU Cohesion fun for some other project. Lately ministry officials have been reluctant to comment on whether or not the EUR 13 million have been lost. Because the company responsible for the project’s realization has already been paid more than EUR 8 million in advance payments, officials hope it will be possible to recover part of this amount from EU funds. TM state secretary Kaspars Ozolins notes that «PV management has been ordered to assess technical, economic, legal and financial aspects of organizing work to ensure the rest of the money provided to the project can be salvaged, because, as we can see, half of the work has been completed and the other had has not.»

According to the contract, DMU vilcieni is to be held accountable for the progress of the project’s realization. Penalties for not delivering the first modernized diesel train have been adding since February. The maximum amount has already been reached – 10% of the contract’s sum (approximately EUR 2.2 million). It is possible that the company may have to pay the lost EU funding. This means penalties could potentially reach even EUR 15.2 million.

RVR Chairman Kamaruts says: «We are businessmen. And we have already invested more than EUR 20 million into this project. We are not prepared to simply give money to anyone. Why? Because no one gave us any money just like that. Most of this money was attracted from third parties, and this money has to be given back. If we gift the trains and receive no money in return, it is likely that all three companies involved in the project will have to ho insolvent».

According to Kamaruts, the modernization project has been delayed because German Voith Company failed to supply the necessary technology on time. Nevertheless, the situation has normalized – the technology has been supplied and there is no reason to believe Latvia could lose EU funding in this project.


Leave a reply

Week in Lithuania. CIA declassifies document on Lithuania’s post-WWII guerrillas

A report about guerrilla fighting against the Soviet occupation after World War II is among hundreds of thousands of declassified documents published online by the United States Central Intelligence Agency.

People no longer believe in their own country, because they associate it with people who make decisions

The biggest threat to Latvia is the fact that society, including state officials, is afraid. People are afraid of change, afraid of voicing their thoughts (thoughts that often do not comply with the politically correct stance), afraid of being misunderstood. Fear makes it harder to develop. It limits people’s internal freedom. Such is the opinion Inga Antane, president of Baltic Association – Transport and Logistics and sworn attorney of Triniti law firm, explained in her interview to Atbalsts.

Expert: «Lithuania’s renewed National Security Strategy is a «hodgepodge»

This week, the Lithuanian Parliament has overwhelmingly approved a renewed National Security Strategy, laying out 14 major hazards and risk factors to national security.

Industry: advertisements contribute the entire economy of the European Union

Every euro invested in advertisement has seven times the influence on a country’s GDP. Every one euro brings seven euros in return to the country’s GDP, as emphasized by Latvian Advertising Association, noting that advertisement sector contributes to employment in all of the European Union.

Six deputies applied with administrative penalties in Saeima’s autumn session

According to information provided to the parliament, six deputies were applied with administrative penalties during Saeima’s autumn session.

Slower economic growth for Estonia forecast – at 2.2% - for 2017

The economic growth of Estonia in 2017 will be slower than previously expected, Swedbank economists have announced lowering their previous economic forecast for the Baltic country by 0.2% to 2.2%.

Latvian and Lithuanian authorities dismantle two criminal groups

Latvian State Revenue Service’s Finance Police has successfully apprehended two organized crime groups that caused significant damage to the state budget in 2015 and 2016 by realizing different VAT fraud schemes.

Estonia to drop special pensions, push forward sweeping pension reforms

The Estonian government has decided to drop special pensions and to push forward with plans regarding other significant changes in the pension system, including tying the retirement age to the average life expectancy.

KNAB performs inspection about Jakrins’ approval in the board of Rīgas satiksme

Corruption Prevention and Combating Bureau intends to inspect if the approval of acting head of Riga City Council’s Transport Department Emils Jakrins in the management board of Rīgas satiksme had any signs of breach of good management principles.

Chinese GDP up 6.7% in 2016

World’s second largest economy has seen a 6.7% growth in 2016, Chinese official data show, which indicate that the gross-domestic-product increase has been slower than the 6.9% seen in 2015 and the slowest since 1990.

Dozens buried in Italy’s avalanche-stricken hotel

Italy has been shaken by a number of earthquakes this week, one of which has triggered an avalanche burying a mountain hotel, where at least two people have been found dead and dozens more a searched for through rubble and snow.

Weekends to experience frost and thaw; drivers urged to be careful

Weather in Latvia will not be stable in the next couple of days – cloudy weather with some precipitation will be mixed with periods of clear sky, according to State Environmental, Geology and Meteorology Centre.

Logistics Industry Council assesses results of 16+1 summit

Experts say container cargoes have the potential to bring major contribution to the logistics sector. With that, LDz Logistics intends to continue organizing the next container train from China, as well as cooperate with partners from Belarus and China in the context of the Great Stone industrial park, as BNN was informed by Transport Ministry’s representative Ilze Greiskalna.

Parliament supports amendments to avoid expensive land-measuring actions

It will no longer be necessary to prepare land border plan for entry of land units in the Land Book. It will help save budget funds, as it will not be necessary to perform land-measuring actions, as reported by Saeima press-service.

CP supervisors concerned about Latvijas Gāze’s contract terms

The Competition Council is concerned about Latvijas Gāze’s behaviour in the process of liberalization of the country’s gas market. Economy Ministry has submitted a draft of the Gas Trade and Use Rules to the Cabinet of Ministers Committee for review.

Germany seeks clarity from Trump’s government, to boost military spending

Berlin has emphasised plans to increase defence spending after facing criticism from upcoming U.S. President Donald Trump on NATO countries not meeting their spending commitments.

Saeima re-elects Elita Krumina as State Auditor

On Thursday, 19 January, the Saeima re-elected Elita Krumina in the post of State Auditor.

Saeima supports formation of aircraft passenger data registry to combat terrorism

On Thursday, 19 January, Latvia’s Saeima approved the Aircraft Passenger Data Processing Law in the final reading. This will form the passenger data registry.

Milk retail price in Estonia reaches 55 cents per litre after to price hikes

After a long period of low milk purchase prices in Estonia, milk retail prices in the Baltic country have increased twice, reaching the point where famers receive just enough to cover milk production costs.

Ventspils Freeport carries Lembergs around with luxurious car worth EUR 156,000

In spite of a 16.44% turnover decline, Ventspils Freeport bought a lux-class Audi A8L W12 for EUR 156,000 last year. It’s only known passenger so far has been the formally suspended chairman of Ventspils City Council Aivars Lembergs, as reported by Latvijas Avīze.

Estonia concludes bilateral defence framework deal with Finland

Estonia and Finland have signed a bilateral defence cooperation framework agreement aiming for closer and more regular cooperation in the field by the neighbouring countries.

Biden: Wealthiest 1% does not pay enough in taxes

The «top 1% is not carrying their weight», outgoing U.S. vice-president, Joe Biden evaluated at the World Economic Forum, insisting the world's wealthiest that they do not pay enough in taxes.

Latvia and Japan sign convention on attraction of foreign investments

In Tokyo, Latvian Finance Minister Dana Reizniece-Ozola and Japanese Foreign Ministry’s Parliamentary Vice-Minister Motome Takisawa signed a convention between the two countries on double taxation prevention for income tax.

FM: problems with real estate tax cannot be resolved with tax rate corridor

Real estate tax benefits for housing area could be applied for each person declared living in each respective house. Each benefit can be applied to the building and land, Finance Ministry’s representative Aleksis Jarockis reported on conclusions made by the work group responsible for amendments.

Turkey’s New Year’s terrorist admits choosing nightclub randomly

The main suspect of the attack in Istanbul, which left 39 people dead during New Year’s celebrations, had selected randomly the place of attack.

When do you pay fines for speeding?

View Results

Loading ... Loading ...

Polls Archive

Category feed: Feed: