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

The process will last until January 16, Nozare.lv was informed by Pasazieru vilciens board chairman Artis Birkmanis.

During the process, Pasazieru vilciens will be represented by law firms Baker and Glimstedt.

The process will cost Pasazieru vilciens EUR 24,000 (LVL 16,576). The other half will be covered by CAF, writes LETA.

Pasazieru vilciens aims to conclude the process with minimal financial risks. The company is ready for a settlement, but declines to predict its potentials terms.

As reported, Pasazieru vilciens decided to participate in the mediation process at the beginning of October due to not being able to agree with CAF on the procurement of new trains.

Pasazieru vilciens announced the train procurement in December 2009. In March 2011, the European Commission confirmed that LVL 100 million would be provided from the European Union's Cohesion Fund for the project. Under the failed contract, the total cost of new 34 electric trains and seven diesel trains that Pasazieru vilciens wanted to buy was LVL 144, of which LVL 100 million would have been covered from the bloc's Cohesion funds, whereas Pasazieru vilciens co-financing would be LVL 44 million.