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

CAF representatives said at a meeting of Saeima Economic, Agricultural, Environmental and Regional Policy Committee today that they were prepared to discuss amendments to the contract. However, the Latvian side has proposed the Spanish company sign a new contract, and then discuss details, writes LETA.

Transport Ministry State Secretary Anrijs Matiss responded that both parties should discuss matters that still remained not unresolved. He said there were five items to be amended, which he, however, could not reveal due to the confidentiality clause.

Representatives from CAF and Pasazieru vilciens will hold a meeting at 2 p.m. today.

CAF representatives stressed that the Spanish company was prepared to make certain alterations. However, signing a new contract is impossible, because it will change legal relations between the contractual parties. Nevertheless, CAF is prepared to continue talks to reach agreement until October 2.

CAF representatives also said that, although this was not provided for in the contract, it could move part of new train production to Latvia, as well as issue Rigas Vagonbuves rupnica railcar factory a license for the manufacture of trains for CIS countries.

CAF has been working on implementation of the contract since it was signed on April 2. The company has observed all conditions of the contract and established subsidiary CAF Latvia, as well as signed an agreement with a bank so it could make investments in Latvia, the company's representatives informed.

CAF representatives said that their goal was to make trains, not to file lawsuits. However, the company will protect its interests in every possible way if the contract is terminated.

CAF does not understand why reaching agreement is taking so long, because the contract is in Latvia's interest and will contribute to the development of production in the country. CAF invests only in developed and stable economies, and Latvia has such an economy.

As reported, the total cost of new 34 electric trains and seven diesel trains that Pasazieru vilciens wishes to buy is LVL 144, of which LVL 100 million will be covered with funds from the Commission's Cohesion Fund, whereas Pasazieru vilciens co-financing will be LVL 44 million. Together with the train maintenance cost, the contract amount may reach EUR 610.76 million (LVL 429.24 million), and the new trains must be manufactured until August 2015.