Because of the delay in the planned upgrade of its diesel trains, passenger rail operator Pasazieru Vilciens (PV) will be able to use only 50% of the EU funding allocated to the project and will have to borrow the remaining money, according to PV CEO Andris Lubans.
The railway company has not yet declared the estimated amount of the lost EU funding. 85% of the project’s expenses and 70% of the contract’s total value were expected to come from the Cohesion Fund. PV, however, is going to demand a fine, which would be close to 10% of the contract’s value, from the company performing the train upgrade, DMU Vilcieni. The project’s total value is EUR 22 million.
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