A decision on possible penalties against the Czech company ‘Škoda Vagonka’ for the fulfillment of electric train deliveries may be made by the end of the year, said Raitis Nehspors, chairman of the board of JSC ‘Pasažieru vilciens’ (operating under the brand ‘Vivi’), in an interview with the LETA agency.
He explained that the contract with ‘Škoda Vagonka’ is structured in such a way that the final payment is made only after all issues are resolved.
Nehspors noted that ‘Pasažieru vilciens’ has already received 32 electric trains, which are successfully in operation, as confirmed by the increase in passenger numbers. At the same time, PV withheld part of the final payment in an amount covering the maximum possible penalties, he added.
“Clearly, the war in Ukraine has significantly changed the ability to meet the original delivery schedule for the trains. After the outbreak of hostilities, ‘Škoda Vagonka’ had the option, citing force majeure, to terminate the contract or to assume the risks and continue its execution. They chose to continue, and that is why there are trains in Latvia today,” explained the head of PV.
At the same time, he noted that the war has affected ‘Škoda Vagonka’, causing additional costs, so the company presented its arguments and evidence regarding the fulfillment of deliveries. PV is currently evaluating these arguments, and this process takes time, he added.
“If PV withholds a penalty, then this decision must be very well justified so that there are no risks of additional costs in case of litigation,” emphasized Nehspors.
When asked when a decision on penalties might be made, he replied that it is currently “very close to the final stage.”
“I won’t specify a particular date, but the end of the year is the moment when a decision should be made,” said the head of PV.
As previously reported, last year, a total of 19.445 million passengers were transported by rail in Latvia – 13.5% more than in 2023 and 5.3% more than before the pandemic in 2019.
It was also reported that in mid-December 2023, PV began passenger transportation on electric trains produced by the Czech company ‘Škoda Vagonka’. Prior to this, the trains underwent extensive testing on the infrastructure of the Latvian railway. Despite this, in December 2023 and January 2024, the new trains regularly faced various technical issues.
Earlier, the company reported that the last electric train from ‘Škoda Vagonka’ was supposed to be delivered by July 31, 2024, but it was actually delivered on November 13, 2024.
Each electric train consists of four carriages. The length of one electric train is 109 meters. Each train has seating for 436 passengers and standing room for 454 passengers. Boarding is conducted from a single level from raised platforms.
The total cost of the project is 257.889 million euros.
The company PV was founded in 2001 by separating internal passenger transportation from the structure of Latvijas dzelzceļš. Initially, PV was 100% owned by LDz as a subsidiary, but in October 2008, it was transformed into a state enterprise.
