Unimplemented Skanstes Line, the so-called “cemetery tram” project, which was developed several years ago, cost Rīgas satiksme approximately one million euros, said Gints Zeltiņš, a member of the company’s board.
He explained that due to the suspension of the project, the expenses related to its development had to be written off. This had an impact on the company’s profit last year.
Zeltiņš stated that this project was fully developed and ready for implementation. Losing funds from European Union, the municipality, or the company would not have found such a large amount to implement the project.
It would also be difficult to get a loan for such a project because
the construction is expensive, but the payback period is about 30 years.
As reported, the Central Finance and Contracts Agency made a decision to terminate the contract with the company Rīgas satiksme for the implementation of the Skanstes Line project co-financed by European Union funds.
The total cost of the project was estimated at 97.40 million euros, excluding VAT. The financing of the European Union Cohesion Fund was planned in the amount of 65.66 million, the co-financing of Rīgas satiksme – 27.40 million euros, and other public funds for the pre-financing of the performance reserve – 4.33 million euros.
The new tram line was planned in the direction of Skanstes street, near the Great Cemetery, which angered some Riga residents, who accused the municipality of desecrating the memory of the dead and called the new tram line the “cemetery tram”.
As already reported, the turnover of the municipal SIA Rīgas satiksme in 2022 was 168.7 million euros, and the profit was 1.25 million euros.