EU – Baltic States, Legislation, Railways, Transport

TV3 television's broadcast Neka personiga reports that, under the new tender, Pasazieru vilciens will buy fewer trains than currently planned, and the remaining funds could be spent on renovation of platforms and power lines. Train maintenance would also be excluded from the new contract, as Pasazieru vilciens itself would be responsible for the maintenance of the new trains, writes LETA.

Hoping that there will be no litigation and a new tender will be announced, previous bidders – Swiss companies Stadler and Alstom and Germany's Siemens – have resumed talks with the Transport Ministry and Pasazieru vilciens. The board of Pasazieru vilciens will have meetings with representatives of all three companies in one of Western Europe's capitals later this week.

In the meantime, no one is likely to be held responsible for violations committed so far regarding the largest procurement contract in the history of Latvia, which may cause serious financial consequences for the State of Latvia: former Pasazieru vilciens CEO Nils Freivalds, who signed the contract with the Spanish company Construcciones y Auxiliares de Ferrocariles (CAF) and then stepped down, now works as an expert on development affairs at the joint-stock company Zasulauks, a company partly owned by Pasazieru vilciens.

On the other hand, CAF is doing active work behind the scenes, for instance, via Rigas vagonbuves rupnica railcar factory's consultant, former Saeima member Andris Berzins, who arranged CAF representatives' meetings with Saeima groups.

A week ago, the Spanish company established a subsidiary called CAF Latvia, which has already borrowed EUR 17 million from Danske bank for renovation of a train depot.