Latvia’s Cabinet of Ministers reviewed Transport Ministry’s report on the first phase of railway network electrification project that will use financing from the Cohesion Fund with the co-financing of Latvian Railways (LDz). This solution was achieved because as a result of the technological development, LDz has managed to reduce the total expenses of the first phase from EUR 519 million to EUR 441 million. Thus, the company was able to attract the necessary co-financing without any investment of the state. Negotiations have been started with the European Investment Bank.
TheCabinet of Ministers has instructed the Central Finance and Contracting Agency to extend the project submission deadline to 28 February 2018.
During the first phase of the project, it is planned to electrify railway network from Daugavpils and Rēzekne to Riga, performing electrification with 25 kV AC technology.
LDz will implement the first phase of railway network electrification within the programme on ensuring competitive and environmentally friendly TEN-T railway network, employing the available funding of EUR 346.64 million provided by the Cohesion Fund.
“The financial contribution of the project is of importance, as more than EUR 300 million of the total project expenses will be invested in Latgale region, creating direct and indirect effect, including development of different service industries in the territory of construction works,” Minister of Transport, Uldis Augulis said.
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