RIGA, Oct. 9 (Xinhua) -- Latvia's national rail company Latvijas Dzelzcels (LDz) will receive 318 million euros worth of EU co-funding for a major railway electrification project under an agreement signed with the Central Finance and Contracting Agency of Latvia, local media reported Wednesday.
A new network of traction substations and power lines will be constructed to renovate and upgrade Latvia's existing railway infrastructure, improve its safety, quality and capacity, as well as to make it more environmentally-friendly, the government agency said.
The first stage of the project, scheduled for completion by 2023, provides for the electrification of three railway lines connecting the eastern Latvian city of Krustpils with the capital city Riga, Latvia's second largest city Daugavpils and the eastern Latvian city of Rezekne.
Construction works are due to begin at the end of 2020 to upgrade 300 kilometers of railway lines. It is expected that the electricity-powered trains will help cut carbon dioxide emissions in rail traffic by at least 25 percent, and as a result of the upgrades, freight forwarders will be able to save costs by using heavier trains weighing up to 9,000 tons.
The total costs of the first stage of the railway electrification project are estimated at 441 million euros. The Latvian government has earmarked over 28 million worth of budget money for the project and also plans to raise additional funding from the European Investment Bank. (1 euro = 1.10 U.S. dollars)
