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International Internet Magazine. Baltic States news & analytics Sunday, 12.07.2020, 12:20

LDz concludes EUR 319 mln agreement on railway electrification

BC, Riga, 10.10.2019.Print version
The Central Finance and Contracting Agency (CFCA) has concluded an agreement with Latvia's state-owned rail company Latvijas Dzelzcels (LDz, Latvian Railways) on granting over EUR 318 mln from the European Union Cohesion Fund for development of electric train infrastructure, the CFCA informed LETA.

With the aim to develop and modernize the railway network in Latvia, to increase its safety, quality and capacity, as well as to make it more environmentally friendly, the project foresees construction of the European transport network railway infrastructure, reconstruction and renovation of the existing infrastructure, by construction of new traction substation and electrical power network.

As reported, the first phase of the LDz rail network electrification project provides for the electrification of the Daugavpils-Krustpils, Rezekne-Krustpils and Krustpils-Riga railway lines by the end of 2023.

The project implementation will allow transportation of heavier trains with the maximum gross weight of 9 000 tons, thus reducing expenses of freight forwarders per one kilometre. By reconstruction and modernisation of the rail in the total length of 300 km, it is planned to decrease the rail transportation CO2 emissions by at least one forth.

Railway electrification is financially the largest project financed by the EU funds in this planning period and has received EUR 318.5 mln from the European Union Cohesion Fund, as well as EUR 28.08 mln from the national budget. Considering the fact that the project's funding exceeds EUR 50 mln, the project was reviewed and confirmed by the European Commission, which granted its approval on 12 July.

A tender to carry out the design and construction works planned in the first stage of the project concluded in the fall of 2018. Four bids were received in the first (qualification) phase of the tender. The bidders participating in the tender include Inabelec, Siemens-TSO-BMGS, Cobra-Arcers and LREC. Considering the complexity of the project, LDz continues to assess the bids.

The estimated costs of the first stage of the electrification project are EUR 441 mln.

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