Information on EU’s DG MOVE position regarding the Contracting Scheme agreement

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07.10.2016

Information on EU’s DG MOVE position regarding the Contracting Scheme agreement

The EU’s Directorate General on Transport and Mobility (DG MOVE) has informed RB Rail that the Commission believes at this stage that a major delay has occurred in implementing the global Rail Baltic/ Rail Baltica project especially as far as the signing of the Contracting Scheme agreement is concerned.

The absence of the signature on the Contracting Scheme agreement by the "Lietuvas geležinkeliai” means that the conditionality underpinning the allocation of funding in the second CEF Call 2015 is unmet. Consequently, the Commission believes that Lithuania could be in breach of Article 22 of the CEF Regulation, which provides that "beneficiaries and Member States shall make every effort to implement the projects of common interest which receive Union financial assistance granted under this Regulation" since LG is a state owned company.

In view of the failure of the above-mentioned conditionality, DG MOVE has triggered the provision of Article 12.2 of the CEF Regulation and instructed the Innovations and Network Executive Agency (INEA) to speedily conduct the evaluation of progress in implementing the global Rail Baltic project with a view to INEA suspending, reducing, recovering or terminating the Lithuanian activities and funding under the Grant Agreement for the Action 2014-EU-TMC-0560-W and the Grant Agreement for the Action 2014-LT-TMC-0190-M. In addition, DG MOVE has also instructed INEA to suspend the negotiations establishing the Grant Agreement for the second CEF Call 2015 for the Lithuanian part of the activities and funding.

The amount recommended for funding to Lithuanian activities in the first and second CEF Call 2014-2015 (i.e. around €320 million) may be re-used for the future CEF Calls.

On Monday, October 10, RB Rail Management will discuss with INEA in details on the process of evaluation of progress in implementing the global Rail Baltic/ Rail Baltica project, including on the next steps for the second CEF Call 2105 activities of Estonian and Latvian on Monday.

"RB Rail AS"

“RB Rail AS” is a joint venture between the three Baltic States established in October 2014. Holding equal shares in “RB Rail AS” are SIA “Eiropas dzelzceļa līnijas” in Latvia, UAB “Rail Baltica statyba” in Lithuania and OU “Rail Baltic Estonia” in Estonia.

“RB Rail AS” is the central co-ordinator for the Rail Baltic/Rail Baltica project. The project involves the construction of a high speed rail line from Tallinn to the Lithuanian/Polish border. Rail Baltic/Rail Baltica will be an electrified public use rail line, an environmentally friendly and modern form of transportation.

For more information:

Ilze Rassa
Communications and Government Affairs Manager
+ 371 27 337 767
Ilze.rassa@railbaltica.org

Ligita Brodiņa
Communication consultant
+ 371 29 416 096
ligita.brodina@vilands.lv