Spanish train manufacturer Construcciones y Auxiliar de Ferrocarriles (CAF), which won a tender organized by the Latvian public company AS Passenger Train, has finally run out of patience.

Last week, the company met with Latvian parliamentary factions, ministers and other officials. It implied quite clearly that if Latvia keeps delaying the project, Stockholm court will launch proceedings.

According to the portal Pietiek, Spaniards have scrupulously explained all costs of the project, orders and other activities. The total bill may also contain legal costs, which can account for millions of lats.

This means the train manufacturer will make use of its huge resources to address Stockholm Arbitration Court, where Latvia has not won a single case.

CAF has repeatedly pointed out that it is high time to stop delaying the project and start manufacturing trains.

Latvian Transport Ministry assumes that the company objects to Passenger Train 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.

Besides, reportedly, the new contract offered by Stokenbergs includes the same points CAF has already previously objected to.

But there is yet another thing why the company is running out of patience. Stokenbergs has offered to establish a joint venture for train repairs, which the company has agreed to.

But what CAF did not see coming was that upon visiting Latvia it found out the following – the Transport Minister, Aivis Ronis, and Transport State Secretary, Anrijs Matis, do not know anything of such an intention.

As reported, the procurement foresees a purchase of 34 new electric trains worth 144 million lats (261 million dollars) by August 2015. The EU Cohesion Fund has allotted 100 million lats (181 million dollars), while Passenger Train cofinances 44 million lats (80 million dollars). CAF shall ensure maintenance of the new trains for 30 years.

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