Latvia’s passenger rail operator AS Pasažieru vilciens (PV), operating under the Vivi brand, will impose a €5.7 million contractual penalty on Czech manufacturer Škoda Vagonka over delays in delivering its new electric trains and the failure to rectify identified defects within the agreed deadlines, PV Chairman Raitis Nešpors has confirmed.
Nešpors explained that the project had been affected by several external factors during contract implementation, including the COVID-19 pandemic and the consequences of Russia’s war against Ukraine, circumstances that Škoda Vagonka had also cited in its explanations.
“These factors were taken into account by extending the contractual delivery deadline, but unfortunately that deadline was still missed,” Nešpors said.
He noted that PV had reviewed the explanations and documentation submitted by Škoda Vagonka, together with independent assessments prepared by audit firm PricewaterhouseCoopers and Latvian law firm BERG.
Based on that evaluation, PV concluded that there were no legal grounds for waiving the contractual penalties предусмотрed under the agreement for delayed deliveries and other contractual breaches.
As a result, the company decided to impose a €5.7 million penalty, covering delays in the delivery of the electric trains, the failure to eliminate identified defects within the specified deadlines, and other instances of non-compliance with contractual obligations.
At the same time, Nešpors stressed that the decision does not diminish PV’s appreciation of the project’s importance for the development of passenger rail transport in Latvia or Škoda Vagonka’s contribution to its implementation.
Despite the challenges encountered during the project, all 32 electric trains have now been delivered, he noted.
According to Nešpors, the new fleet has significantly contributed to the growth of rail passenger transport. Before the introduction of the new trains, PV carried 17.1 million passengers in 2023. By 2025, passenger numbers had risen to 21.3 million, an increase of 25% compared with 2023.
He also highlighted that the punctuality rate of the new trains has reached 98.4%, one of the highest levels in Europe.
As previously reported, PV transported a total of 21.333 million passengers in 2025, representing a 9.7% increase compared with the previous year.
Passenger services using Škoda Vagonka’s new electric trains began in December 2023, following an extended testing period on Latvia’s railway network. However, during the first months of operation in December 2023 and January 2024, the new trains experienced a number of technical problems.
The company had previously stated that the final Škoda Vagonka train was contractually due to be delivered by 31 July 2024, but the last unit did not arrive until 13 November 2024.
Each electric train consists of four carriages, measures 109 metres in length, and provides seating for 436 passengers as well as standing space for 454 passengers. The trains feature level boarding from raised passenger platforms.
The total value of the procurement amounted to €244.846 million, including €168.19 million in financing from the European Union Cohesion Fund.
Pasažieru vilciens was established in 2001, when domestic passenger rail services were separated from the functions of Latvijas dzelzceļš (Latvian Railways). Initially a wholly owned subsidiary of Latvijas dzelzceļš, the company became a standalone state-owned enterprise in October 2008.
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