EU – Baltic States, Latvia, Legislation, Railways, Transport

However, if this deadline is missed, Latvia will lose European Union's cohesion funding for the project, writes LETA.

Freivalds told a press conference today that CAF was working on eight different projects simultaneously. Last year, the company received orders worth EUR 4 billion altogether.

Freivalds declined to reveal the amount of the contract signed with CAF, saying that this was confidential information, yet he said that CAF had offered good and competitive prices. CAF has cooperation partners in Germany, New Zealand, United States, Finland, Sweden, and elsewhere.

Freivalds said the fact that the trains to be built for Latvia were identical was their main advantage: the new trains will ensure flexible passenger transport options as they may be combined in various ways in just couple minutes, from one-car trains to trains with multiple cars. Also, there will be no problems with adapting the new trains for using different sources of energy.

Freivalds said he did not believe that Swiss company Stadler, which had filed several complaints over Pasazieru vilciens procurement of new trains, could influence the further procurement process, because two courts have already turned Stadler complaints down as unfounded.

The main reasons why signing the contract took so long were errors in the technical specifications for the new trains and the fact that the procurement contract had to be combined with the maintenance contract, said Freivalds.

As reported, Pasazieru vilciens has signed train procurement contract with CAF, according to which all Pasazieru vilciens electric trains and one-third of diesel trains will be replaced by the end of 2015.

Pasazieru vilciens informed Nozare.lv that the new trains will operate in Latvia already in the first half of 2014. The company will purchase 34 electric trains and seven diesel trains. CAF will ensure their service and maintenance during next 30 years.

The company emphasizes that the contract matches Pasazieru vilciens and state interests. Pasazieru vilciens has completed all Cabinet tasks to sign the contract.

Pasazieru vilciens believes that the contract will foster Latvia's long-term development. The project will ensure preconditions for trains to become the least expensive and environmentally cleanest transportation means. Pasazieru vilciens passengers will be able save money and time and enjoy comfortable commuting. The project will improve resident mobility and promote regional development significantly.