bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Saturday 16.12.2017 | Name days: Alvīne
LatviaLatvia

Railway electrification to commence with Ventspils destination

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe railway electrification project by Latvijas dzelzceļš is planned to commence with Ventspils as the primary destination, as confirmed by LDz representatives.

In the first stage of the project (2019-2023), it is planned to electrify railway lines in the direction of Daugavpils-Krustpils and Rezekne-Krustpils further in the direction of Ventpils. The total costs of this stage of the project are estimated at EUR 660 million. In the second stage of the project (2020-2025), it is planned to electrify railway lines in the direction of Krustpils-Skirotava and Daugavpils-Indra in the direction of Riga. The total costs of this stage of the project are estimated at EUR 519 million.

After 2023, it is planned to electrify the section of the railway headed from Jelgava to Liepaja. It is also planned to reconstruct the already electrified railway sections in Pieriga. The total costs of the entire railway electrification project are estimated at EUR 1.3 billion.

The cost-benefit analysis of the project compiled by Ernst & Young Baltic states that influence of electrification of the railway on GDP is estimated at EUR 256 million (38% of investments to be recovered locally), corporate income tax revenue is estimated at EUR 38 million and indirect benefits caused by the project are estimated at EUR 220 million.

The project’s assistance in helping save up energy costs is estimated at EUR 405 million. The money to be saved on rolling stock maintenance costs is estimated at EUR 242 million.

At the same time, the project is expected to have a positive impact on the environment, reducing the volume of harmful emissions and their impact on climate change, healthcare and other costs. It will also help reduce the risk of oil, diesel fuel and other substances, as well as reduce the level of noise produced by trains.

There are negative factors to consider as well. For example, it has been calculated that Excise Tax revenue for diesel fuel will decline as a result of electrification of railway lines by more than EUR 300 million. Nevertheless, the overall effect from the project will be positive.

LDz Chairman Edvins Berzins added that the main benefits from the project include positive impact on the environment and national economy, especially in Latgale, where it is planned to invest approximately EUR 340 million. On top of that, Latvia’s national economy will recover all finances invested in the first stage of the project.

According to him, Latvia’s transit corridor will become cheaper in its electrified section by EUR 1 per ton. At the same time, Lithuania plans to have electrified the railway line from the border with Belarus to Klaipeda port by 2030. Because of that, the matter is related to the competitiveness of Latvia’s transit corridor in the region.

At the same time, he added that this project has been discussed with the largest business organizations, including Latvenergo and Augstsprieguma tīkls.

The choice in favour of Ventspils and not Riga was made, considering fewer unknown factors from a technical perspective, less congested transport connectivity, less impact on prices of Pasažieru vilciens services and the possible synergy with Rail Baltica.

At the same time, Berzins denied any kind of political pressure to ensure the choice in favour of Ventspils.

Once the route towards Liepaja has been electrified, it will be possible to apply Green Corridor status to it. Hydrogen-powered train mechanism is currently in the stage of research. LDz also considers fitting trains with gas-powered engines and secure such transport services in Liepaja’s direction.

Realizing the project’s initial phase will cost the state and LDz approximately EUR 300 million. This funding will become necessary starting from 2019. It can be secured by increasing the base capital of LDz, attracting a loan as by securing state co-financing. A technical project will be developed by 2019.

Berzins emphasized that even if the government does not support the project, ‘nothing bad will happen’ and LDz will continue its work. Nevertheless, this is a unique opportunity for Latvia to realize this project using co-financing from the European Union.

There is co-financing of EUR 347 million currently available to Latvia in the 2014-2020 planning period of the European Union Cohesion Fund.

The final decision about this project will be made by the government on 25 October.

Ref: 102.109.109.7891


Leave a reply

Citadele Index: businessmen are more optimistic about economic growth

After a four-year gap, optimism has been noticed in all of Latvia’s business sectors. For the third consecutive quarter Citadele Index value exceeds 50 points. Businessmen are also positive about the country’s economy and their own finances, according to the final Citadele Index study for 2017.

Bank of Latvia increases GDP growth outlook to 4.7% for 2017

Bank of Latvia has decided in increase gross domestic product growth outlook from 4.2% to 4.7% for 2017, as reported by the bank’s governor Ilmārs Rimšēvičs.

Latvian residents’ opinion of government’s work remains negative

Latvian residents voiced the biggest degree of dissatisfaction about the development of the situation in Latvia and the work performed by the government. Although the previous evaluation of government’s work had increased by four points, it has since declined by two points, according to data from Baltic International Bank’s Latvian Barometer.

Eel fishing to be restricted in Baltic Sea for three months

European Union Fisheries Council has decided to restrict eel fishing for three months in 2018 in all waters, including the Baltic Sea. Although the World Wide Fund for Nature and environmental organization in Europe view it as a notable first step, these efforts are unlikely to have a major impact on the most important problem – eel population continues declining rapidly, as noted by WWF.

LCCI: increase of electricity bills for thousands of companies in unacceptable

Latvian Chamber of Commerce and Industry (LCCI) categorically opposes increasing electricity bills for the majority of small and medium-sized companies due to mandatory procurement component’s differentiation. The organization believes that this would basically introduce a new additional tax, making them even less competitive.

Head of Latvian Association of Regions to spend Christmas thinking on remaining in the party

Dissatisfied with multiple decisions made by Latvian Association of Regions (LAR), Riga City Council member Mārtiņš Bondars will spend the holiday thinking about his place in this political party, as he mentioned in his interview to Rīta panorama or LTV.

Estonian fund permitted to purchase several Latvia energy production companies

Latvian Competition Council has permitted Estonian fund to purchase several energy production and agricultural companies.

Meat processing giant sees room for growth in ready-to-eat foods

Consumption in the meat market segment of ready-to-eat foods is growing quickly, evaluated Finnish meat processing group HKScan that is planning to invest eight million euros in its factory in Estonia.

To fight for national minority schools, Russian representatives promise to hold a referendum

Defenders of Russian schools in Latvia promise to organize a referendum for autonomy of national minority schools, said co-chairman of Latvian Russians Association Miroslavs Mitrofanovs in regards to the transition to education only in Latvian language.

Tax payment process from capital growth to change in Latvia

As part of the tax reform, changes will be added to the Personal Income Tax Law starting from 1 January 2018. One of the changes is associated with payment and declaration of income from capital growth. The tax rate and the term for submission of declarations on income from capital growth will change next year.

Tusk deems EU migrant quotas ineffective as some states oppose taking in migrants

Donald Tusk, the head of the Council of the European Union and chairman of this week's EU summit, has evaluated that mandatory EU-wide quotas are ineffective and that there is a split between east and west as regards asylum policy.

Riga City Council’s 2018 budget – poorly planned or well-developed?

As the vote for the 2018 budget of Riga City Council draws near, representatives of all opposition parties say they will not support it as long as politicians of the ruling coalition continue viewing the city’s most important financial document as good and aimed at development.

Euro area economy has grown quicker than expected, European Central Bank estimated

Growth has been at a faster pace in the eurozone prompting the European Central Bank to raise its economic growth forecasts.

Weekends in Latvia expected to be snowy

A layer of snow will form in Latvia’s central and western regions that will remain until the middle of next week, as reported by State Environment, Geology and Meteorology Centre.

Opinion: Latvia at risk of restricting healthcare to 300,000 people

Kustība Par! political party has sent a letter to Latvia’s President Raimonds Vējonis, asking him to return to the Saeima the recently approved law on healthcare funding legislative draft. According to the party, the law restricts healthcare for 300,000 people in Latvia.

Lithuania’s 2018 budget focuses on spending cuts, NATO commitment and social security

Lithuania's 2018 budget, approved this week by the Seimas, Lithuanian Parliament, makes history for being the first budget ever with fewer spending for the governmental sector, the commitment to NATO of earmarking 2 per cent of the gross domestic product to defence and bigger allotments for social security. The budget was adopted by 84 MPs, 29 voted against, with 15 abstentions.

EU member states have to strengthen measures against sexual abuse of children

Member states of the European Union have to take more serious measures and cooperate more intensely with Europol and information technology industry to better combat sexual abuse of children, as noted by members of the European Parliament.

Latvian parliament views initiative for changing VAT rate for food product

On Thursday, 14 December, Latvia’s Saeima made its decision on the collective application that proposes reducing VAT on everyday healthy food products and increasing VAT on unhealthy products.

Maxima: residents have become more conservative in their choice of products

In Q2 and Q3, a higher degree of conservatism was noticed in residents’ choice of products. The number of buyers who gladly purchase new products has declined, whereas the number of buyers who do not change anything in their purchasing habits has increased, according to results of a study performed by Maxima.

Civil processes to be sped up and simplified in Latvia

On Thursday, 14 December, Saeima supported amendments to the Civil Process Law in the final reading. Amendments propose several major changes to the process of review of civil processes to make court sessions quicker and more efficient.

State Auditor dissatisfied with parliament’s slow legislative process

Latvian State Auditor Elita Krūmiņa plans to inquire to the Saeima about the delay with the approval of the legislative draft on the expansion of authority of her institution, as she mentioned in an interview to Rīta panorama programme of LTV.

Aldaris commences exports to France, China and Netherlands

Aldaris concludes 2017 with three new export contracts, commencing exports of products to China, France and Netherlands. Until now Aldaris has exported products to eight markets, with the largest one being United Kingdom, taking up 78.71% from Aldaris export volume, as reported by the company.

Estonian budget passed with 0.25 billion-euro deficit

The Estonian Riigikogu with 55 votes against 41 has passed the country’s 2018 state budget bill planning to spend by 0.25 billion more than it is planned to earn.

AFSAL: loan requests in non-banking industry are declined in 69% of all cases

In the first six months of 2017 Alternative Financial Services Association of Latvia (AFSAL) issued a total amount of EUR 84.7 million in consumer loans. No increase is noted in this amount when compared with the same period of 2016. Increase did not exceed 0.2%, as reported by the association.

European Parliament supports changes for combating activities detailed in Panama Papers

Public registries with names of true owners of businesses, effective protection of whistle-blowers and stricter requirements for financial intermediaries are some of the proposals intended to assist with the fight against tax avoidance, as noted by members of the European Parliament.

Newest comments

When do you go shoping for Christmas gifts?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: