If Skoda Group doesn’t deliver the ordered dual-system electric trains for Pasažieru Vilciens by the end of the year, Latvia risks losing €114.2 million of co-financing from the EU for their acquisition, as reported by the railway portal Railway Supply.

Skoda Group trains

The manufacturer explains the delivery delay by the pandemic and the conflict in Ukraine. Currently, 15 trains have been produced, and their delivery is planned for October. Skoda Group might also face penalties.

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The Ministry of Finance is currently discussing the financing of the delivery with representatives from Skoda Group. Rogers Janis Grigulis, the representative of the carrier Pasažieru Vilciens, emphasized that penalties for Skoda Group will be determined later if the delivery is not completed on time.

The situation is complicated due to the revised delivery schedule in 2022, according to which 23 trains were supposed to be in operation already.

However, delays occurred due to the impact of the COVID-19 pandemic and the conflict in Ukraine.

Despite this, production of 15 trains has already been completed, and their delivery is scheduled to start in October.

Latvia and Skoda Group are now working to minimize the consequences of the delay to avoid losing co-financing and facing penalties.

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