Latvian passenger carrier Pasažieru vilciens (PV) and Czech rolling stock manufacturer Škoda Vagonka have reached an agreement to extend the delivery deadlines for new electric trains, this is reported by the railway transport news portal Railway Supply.

The delivery of Škoda Vagonka electric trains to Latvia

Under the terms of the agreement, the manufacturer must deliver all remaining electric trains to the customer by the end of this summer.

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Currently, PV has received 17 out of the planned 32 trains. Thus, Škoda Vagonka has until the end of summer to deliver 15 more trains.

Representatives of the companies explained that the agreement was based on an analysis conducted by independent experts on the impact of the Russian invasion of Ukraine on contractual obligations.

As acting CEO of PV, Raitis Nešpors, stated, both the customer and the manufacturer understood that the Russian aggression would significantly affect the contract’s execution, but initially, it was difficult to predict the extent of this impact.

To assess the impact of the war on contract performance, Škoda Vagonka provided an expert opinion prepared by Deloitte Advisory, and PricewaterhouseCoopers Legal was engaged to evaluate the opinion.

The legal consultant concluded that the circumstances outlined in the opinion were objective and justified the extension of the contract deadlines, as these circumstances could not have been foreseen by either party at the time of its conclusion.

“As a result of this impact, Škoda Vagonka has to assemble the trains twice – first at the company’s production facility in Ostrava, where after certification by independent bodies, the trains are partially disassembled, loaded onto trucks, and transported to Latvia, where they are assembled again at the depot in Riga,” explained Martin Bednář, Chairman of the Board of Škoda Vagonka.

As previously reported, the supervisory board of the Latvian carrier is resigning due to issues with Škoda trains.

Source: Jauns.lv.

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