Latvian government supports the first phase of the Daugavpils – Rezekne – Riga via Krustpils railway electrification project proposed by Transport Ministry and Latvian Railways. The total cost of the electrification in Riga’s direction is EUR 519 million, while funding provided under EU’s Cohesion Fund is EUR 347 million.
The ambitious electrification project will make the Latvian transport corridors more competitive and rail operators will be provided with new business development opportunities. “Given the trends in rail freight transport, the electrification will start in the direction of Riga, thus achieving the necessary objectives of the project is economically viable. At the same time the project represents a significant investment in the sector and the country’s economic growth, as well as a serious contribution to the development of Latgale region, ” stated Latvian Transport Minister, Uldis Augulis.
The analysis carried out by Ernst&Young Baltic last year in regarding the two alternatives for the first stage of the electrification project concluded that the electrification of the railway line in the direction of Riga would be the most economically viable solution, Transport Ministry says.
LDz will prepare a detailed business plan for the project and will evaluate the solutions for the participation of the state in the project to ensure its implementation will not impact the state budget.