The MoU will look for solutions to ensure railway traffic in non-electrified areas, as the zero-emission or BEMU train project cannot be implemented according to the conditions of the Recovery Fund (AF), the ministry told LETA agency.
One of the possible solutions could be the expansion of cooperation in the field of railway transport with other Baltic states. The MoU emphasizes that issues of availability of rolling stock in non-electrified areas will be addressed in connection with the opening of the domestic rail transport market to competition, by evaluating market opening scenarios and models of railway rolling stock provision.
Also, the priority at the moment is to ensure the modernization of the existing railway platforms and stations, so that residents can fully use the conveniences when traveling with the new electric trains.
The Memorandum of Understanding urges the BEMU train project to be discontinued, diverting available funds from the European Union (EU) funds to projects in the railway sector with a higher degree of readiness.
The final decision regarding the BEMU trains will be made after the government approves the redistribution of EU funds under the control of the MoU and after receiving official approval from the European Commission (EC).
In case of a positive decision of the Cabinet of Ministers and approval of the EC, the BEMU project will be terminated, the available funds will be directed in accordance with the goals and activities indicated in the informative report developed by the MoU.
In the informative report prepared by the MoU on the development of the Latvian railway network in the EU multi-year budget period of 2021-2027, MoU proposals for the further integrated development of the existing railway network and the “Rail Baltica” project are presented.
The Ministry states that after reviewing the portfolio of planned railway development projects financed by EU funds, it was concluded that the zero-emission railway infrastructure development project cannot be implemented in accordance with the AF financing regulations, as the necessary production capacity for the production of power supply substations and other components essential to the project is not available within the specified deadlines.
Accordingly, the MoU suggests abandoning the purchase of emission-free or BEMU trains, as their operation is impossible without adapted railway infrastructure. It was also taken into account that only one applicant was found in the procurement of emission-free trains, and thus it is not possible to compare the offered price with the offers of other market players in order to deal rationally with the available financing.
Reassessing the BEMU program, the MoU has concluded that the proposed solutions without significant additional investments in the electrification infrastructure are not optimal for traffic organization on long-distance routes – Daugavpils, Rēzekne, Zilupe and Liepāja.
Earlier, the Road Transport Directorate (ATD) informed that the offer of the association “Škoda Transportation – Škoda Vagonka” (“Škoda”) continues to be evaluated in the purchase of BEMU trains.
ATD announced the procurement in April 2022.
Nine battery electric trains were planned to be purchased using EU funds and Latvian state budget funds. The procurement documentation provides for the possibility to purchase additional units in the event of additional financial opportunities.
It was also reported that in March 2023, the government supported the pre-financing required for the purchase of BEMU trains up to 74.4 million euros, as well as the allocation of 15.624 million euros needed to cover value added tax (VAT) to SM from the state budget as needed until the end of 2026.
It was planned that the seven trains purchased with AF support would be delivered by the end of 2026 and would run in Riga and Pieriga, while the purchase of two more trains was planned to be co-financed from EU funds for 2021-2027, including Cohesion Fund funding, and used in non-electrified in the lines.
2024-09-04 16:52:21