EU – Baltic States, Financial Services, Latvia, Legislation, Railways, Transport

The Transport Ministry points out in the accompanying letter that the procurement contract has not come into force and, taking into account that all project activities should be completed by August 31, 2015, an instant decision is required regarding the country's further actions with the European Union's funds, ensuring that they are fully absorbed, reports LETA.

As reported, Latvia's passenger train operator Pasazieru vilciens announced the train procurement in December 2009. In March 2011, the European Commission confirmed that LVL 100 million will be provided from the European Union's Cohesion Fund for the project.

Under the failed contract, the total cost of new 34 electric trains and seven diesel trains that Pasazieru vilciens wanted to buy was LVL 144, of which LVL 100 million would have been covered from the bloc's Cohesion funds, whereas Pasazieru vilciens co-financing would be LVL 44 million. Together with the train maintenance cost, the contract amount would have reached EUR 610.76 million (LVL 429.24 million), and the new trains would have been manufactured by August 2015.