All agreed loans

Latvia. VAS Latvijas Dzelzcels

Date of loan: 24 Sep 2014
Country: Latvia
Customer: VAS Latvijas Dzelzcels
Amount in EUR: EUR 17.3 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

This is a third loan for the construction of a second track on the 52-kilometre railway section between the Skriveri and Krustpils stations. NIB has been financing the Skriveri–Krustpils project since 2010 with two loans totalling EUR 25.6 million.

The Skriveri–Krustpils section is part of the east–west railway corridor and the Trans-European Network linking Latvia’s ports of Riga and Ventspils with Russia and Belarus. The modernisation of the corridor will increase its freight throughput capacity. Construction started in 2011 and is expected to be completed by the end of 2014.

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

Fulfilment of NIB's mandate

Competitiveness:

The project will increase the capacity of the railway network in Latvia by about 1.5 billion tonnes per kilometre per year. This would allow the company to increase its annual freight turnover by up to 8%. The project will improve access to and enhance the safety of a strategic 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 expected to crowd out road transportation, thus contributing to reducing emissions of greenhouse gases. In addition, traffic safety will be improved, and emissions of other pollutants and noise from road transportation will decrease.

Sustainability summary

The work will be carried out within the existing railway’s right of way and no sensitive areas are to be impacted by the project. The new track will, however, be located too close to private property with a residential house. The property has therefore been divided into two lots and the part located closest to the track has been acquired by the Ministry of Transportation. The waste procedures are in line with NIB’s Sustainability Policy and Guidelines.

Press release

NIB piešķir jaunu aizdevumu austrumu-rietumu dzelzceļa koridoram Latvijā