We have to set maximum price cap for Rail Baltica project in Latvia, said Latvian Prime Minister Evika Siliņa at a meeting of Saeima’s Rail Baltica Inquiry Committee on Tuesday, the 3rd of December.
“The biggest problem now is funding. The Ministry of Transport paints visions and assumes the Ministry of Finance will finance all of that. This is not how it will be! It is my plan to establish a maximum price ceiling,” said Siliņa.
She also said the Riga connection is important, so it is planned to use existing railway infrastructure with “Škoda Vagonka” trains and connect both Riga railway stations even before the first stage of Rail Baltica project is completed. Nevertheless, if Latvia wants to study Rail Baltica connection, she said, trains should see heavier load on this route. Only then we can consider introducing high-speed trains. “This will become possible only once trains start circulating on this route,” said Siliņa.
She said it is necessary to lower all costs and “slash the legs” where it is obvious we won’t be building anything.
At the same time, the Latvian PM added it is necessary to ensure integration with the existing railway using the resources Latvia has.
Commenting on the work done by the Minister of Transport, Siliņa said Kaspars Briškens has to do the work asked of him, adding that the minister’s accomplishments will be evaluated by the government. “As I’ve said before – I will be evaluating his work very carefully,” said Siliņa.
She also stressed multiple times that she expects the Ministry of Transport to provide a clear management model for Rail Baltica.
“From the very beginning there hasn’t been a unified management mechanism. Everyone was pointing fingers at what everyone was doing. Upon taking office as Prime Minister, I had ordered the Ministry of Transport to compose a new Rail Baltica management model last October,” said Siliņa.
Siliņa also said she hopes the government will continue reviewing the recently submitted Rail Baltica report next week.
“We expect the Minister of Transport to provide a new management model, which is currently under public review. At the same time, we are working with distributions of funding from the European Union to ensure the existing railway infrastructure is included into this project,” said the Latvian PM.
She said the European Commission still has not provided its final decision on distribution of funding.
Siliņa’s advisor on matters of EU funds Ints Dālderis added that the EC has finished coordinating objectives for “Jasper” consultants, who will hopefully prepare a report by the time the government’s final meeting of the year rolls out. “The EC will not provide its final decision as long as there is no clarity as to, for example, the justification of costs,” she added.
Siliņa stressed that she is not in charge of Rail Baltica’s Cabinet of Ministers Committee, but she does work directly with her counterparts in the EU and Baltic States. The Prime Minister has also sent out letters to Baltic joint company RB Rail and European Railway Lines (EDzL), requesting information on ways to lower costs and submit necessary information to the EC to ensure successful distributions of funding.
She said she would like to see every ministry responsible in this project to some extent. This is why it is planned to be reviewed at the next government meeting.
Commenting whether or not Latvia has the option to drop out of this project, she said Baltic States are not prepared to step away from this project. There are also Scandinavian countries and Poland who are waiting for this project.
She concluded that it is necessary to wait for the new management project, in which the Ministry of Transport will be the main implementer. Nevertheless, other ministries will need to play bigger roles in the project.