Riga, April 25 (LETA) - The company responsible for the construction of the Rail Baltica railway project in Latvia, Eiropas Dzelzcela Linijas (EDzL), has terminated the contract with the designer of the Rail Baltica regional mobility points, Rere Ineco, an association of Latvian and Spanish companies, LETA was informed by EDzL representatives.

EDzL said that the termination of the contract was due to the insolvency of one member of the alliance and the unwillingness of the other to take over the obligations.

The company pointed out that the design of the Rail Baltica regional mobility points was awarded to Rere Ineco, an alliance of Apex Building (formerly Rere Vide) and the Spanish company Ineco, for EUR 3.6 million in November 2022, following an open international tender.

On March 14 2024, the Riga District Court declared Apex Building insolvent. According to EDzL representatives, in such cases the contract allowed for its renewal and for all the works provided for in the contract to be entrusted to the other member of the association, but Ineco did not take on this obligation.

EDzL is currently assessing several scenarios for future actions to continue the design of the regional mobility points.

So far, 17 Rail Baltica Regional Mobility Points have been designed in their minimum form, construction permits and technical regulations have been received from the parties involved, including 11 stations where work has started on the necessary engineering studies and full construction design, EDzL informed.

According to the State Revenue Service, Apex Building had a tax debt of EUR 378,108 as of April 23 this year.

Apex Building had a turnover of EUR 17.636 million in 2021 and made a loss of EUR 247,354. The company's financial data for 2022 and 2023 have not yet been made public, according to Firmas.lv. Deniss Kikots has been the sole owner of the company since October 2023, while before that ReRe Grupa was the sole owner of the company.

As reported, the Rail Baltica project, which has recently highlighted problems with meeting deadlines and acquiring funding, envisages the creation of a European standard gauge railway line from Tallinn to the Lithuanian and Polish borders to connect the Baltic states with other European countries. A new 870-kilometre European rail line with a gauge of 1435 millimeters and a maximum train speed of 240 kilometers per hour is planned for the Baltic countries.

Rail Baltica was originally expected to cost EUR 5.8 billion, but stakeholders have repeatedly said that the cost has increased significantly. Part of the cost will be covered by European Union funds. Rail Baltica is planned to open in phases between 2028 and 2030.

EDzL turnover last year, according to preliminary data, was EUR 6.398 million, up 64 percent compared to 2022, while the company's losses increased to EUR 195,783.

EDzL is a state-owned company with a share capital of EUR 4.445 million.