All agreed loans

Latvia. VAS Latvijas Dzelzcels

Date of loan: 21 May 2013
Country: Latvia
Customer: VAS Latvijas Dzelzcels
Amount in EUR: EUR 17.1 million
Maturity: 10 years
NACE sector / loan type: Land transport
Business area: Infrastructure, transportation and telecom

Environmental effect

This loan contributes to climate change mitigation: 100%

Project

The loan has been provided for the construction of a second track on the 52-kilometre Skriveri–Krustpils section of the east-west railway corridor in Latvia. The project, in fact, envisages the renewal of a second track lost after WW2. Therefore, the existing embankment can host two tracks and no soil reconstruction work is necessary.

The east-west railway corridor in Latvia is part of the Trans-European network. Freights from Russia and Belarus comprise the largest part of freight traffic via the east-west corridor. The modernisation of the corridor will increase its freight throughput capacity.

The Latvijas Dzelzcels (Latvian Railways) Group is a fully state-owned company. The group owns the railway infrastructure and operates the cargo freight as well as passenger railway traffic in Latvia.

Fulfilment of NIB's mandate

Competitiveness: The project will increase the length of double-track sections in the country by nearly 20%. The capacity will increase by about 1.5 billion tonnes/kilometre per year, which is a 50% increase for that section and an 8% increase of the company’s total annual freight turnover. The project improves access to and enhances the safety of a strategic (TEN-T) transportation network, thereby reducing transport costs for the broader business community and the region. This can contribute to further integration and more efficient functioning of product and service markets in the member area.

Environment: Rail transport is assumed to crowd out road transportation, thus contributing to reducing the emissions of greenhouse gases. In addition, traffic safety will be improved, and the emissions of other pollutants and noise from road transportation are expected to decrease.

Sustainability summary

The constructions of the second track between Skriveri and Krustpils will be carried out within the existing railway’s right-of-way and no sensitive areas are to be impacted by the project. The project’s waste management procedures are in compliance with NIB’s Sustainability Policy and Guidelines.

Press release

NIB finansē austrumu-rietumu dzelzceļa koridora modernizāciju Latvijā