The diesel train modernization process may be significantly delayed, furthermore, the situation is complicated by the fact that EUR 13 million in this project was allocated as co-funding from the European Union (EU), this according to a report submitted to the Latvian Transport Ministry by Pasazieru vilciens (PV), The Baltic Course reports.
Out of the total funding necessary for the project (EUR 21.98 million), EUR 13 million was allocated as co-funding from the EU. Delay and failure to fulfill the contractual commitment jeopardize the opportunity of receiving full funding from the EU.
The company informed LETA that DMU vilcieni (Rigas vagonbuves rupnica, Daugavpils lokomotivju remonta rupnica, and VRC Zasulauks), the company that acquired the right to sign the procurement deal, is unable to meet the deadline. PV repeatedly warned the contractor about the legal and financial consequences in case the agreement terms are not met.
CEO of PV Andris Lubans explains that according to the schedule provided in the agreement, six diesel trains have been forwarded to begin the modernization process. The first train was to begin operations already in February this year. The company was expecting this deadline to be met when both planning PV’s operations, and using the EU’s funding.
“We have implemented several emergency measures in order to stabilize the situation and ensure unaltered schedule of the current trains. Delay at DMU vilcieni has already caused the company additional costs,” says Lubans.
The diesel train modernization process is key for the company’s development, as well as passenger convenience and safety. As a result, the energy resource consumption and maintenance costs would be reduced as well.
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