The Latvian government approved 25.55 million euros in state co-financing for Latvian activities related to the construction of the notorious Rail Baltica railway line on Tuesday.
The Ministry of Transport explained that the allocated co-financing is a condition for receiving support provided by the European Commission. If Riga does not contribute its own funds, it will not receive the European transfer from Brussels.
According to the ministry, within the framework of the Connecting Europe Facility (CEF) 2024 program, a total of 170 million euros has been allocated to the Rail Baltica project in Latvia and related activities, of which 155 million euros are intended for the construction of the main line.
The found millions will allow the continuation of the construction of the main line on the section from the Latvian-Lithuanian border to Salaspils. The funds will be directed to the construction of the railway embankment on four sections of the main line with a total length of 13.3 km. The work includes the construction of access and service roads, drainage systems, engineering communications, and other necessary elements. Technical supervision and control over the construction will also be ensured.
The financing will also cover the development of the technical project for the electrification of the Upeslejas – Latvian-Lithuanian border section (first phase) and measures to support the implementation of the project. The funds will cover the services of an engineer for supervising the development of the electrification project and ensuring its compliance with the requirements of the global project, as well as costs for the examination of the construction project.
In addition to state co-financing, the government allocated funds for the compensation of value-added tax (VAT) — 34.78 million euros for Latvian activities and 1.87 million euros for the activities of the company RB Rail.
It was previously reported that the cost of Rail Baltica in the Baltic countries has soared from the initial 4.5 billion euros to 23.8 billion euros. The Rail Baltica project involves the construction of a European standard gauge railway line (1435 mm) from Tallinn to the borders of Lithuania and Poland, to connect the Baltic countries with other European states. A new line of 870 kilometers is planned to be built in the Baltic countries, with a maximum train speed of up to 240 km/h.
Leave a comment