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Monday 11.12.2017 | Name days: Valdis, Voldemārs, Valdemārs
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Train procurement project's money to be used for railway modernization

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Аuthor: Evija Trifanova/LETAThe government conceptually supports the division of the funding that was originally meant for the train procurement project. Now it is planned to use these funds to upgrade the rolling stock and reconstruct railway stations, as well as help develop the TEN-T railway network.

This decision is still required to be coordinated with the European Commission, as reported by the Transport Ministry.

It has been conceptually agreed to divide the 21 499 923 LVL for the modernization of the rolling stock and railway station reconstruction. The government will decide on the source of co-funding for railway station reconstruction next week.

78 579 366 LVL, on the other hand, will be diverted to the development of the TEN-T railway network.

These activities will ensure the long-term function of the Latvian railway and continuous service provision for passengers. The procurement of new trains and the replacement of the current rolling stock will need to be carried out by AS Pasažieru vilciens (PV) gradually, based on commercial principles. Transport Minister Anrijs Matiss has ordered the Board of PV to develop an action plan for the restoration of the rolling stock.

The division of funds will also result in the improvement of passenger accessibility and infrastructure modernization, as well as the installation of new alarm systems and railway line reconstruction (approximately 95 km). The reconstruction of the current rail lines will reduce the volume of noise and improve general safety, the ministry notes.

As the Chairman of PV, Artis Birkmanis, told the Cabinet of Ministers this Tuesday, negotiations with the Spanish Construcciones y Auxiliar de Ferrocarriles (CAF) ended fruitlessly.

BNN previously reported that the negotiations between PV and CAF concluded not too long ago. CAF has decided to turn to the court against PV and the Latvian Transport Ministry in regard to the contract signed between PV and CAF on April 2, 2012.

This massive train procurement contest was announced by PV in December 2009. The European Commission approved the allocation of additional funding in March 2011 (100 million LVL).

In April 2012, PV signed a train supply contract with CAF. However, it was then revealed that the contract signed by Nil Freivalds, then the Chairman of PV, did not comply with the initial requirements set by Latvia.

The former management of PV was removed in May 2012. The new management initiated negotiations with CAF about adding amendments to the contract.

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