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2019.12.06 12:00

Lithuanian Railways greenlighted for €363m deal with Spain's Elecnor

Paulius Viluckas, Roma Pakėnienė, BNS2019.12.06 12:00

State-run Lithuanian Railways (LG) were given a green light on Thursday to sign the 363-million-euro electrification deal with Spain's Elecnor.

The electrification of the Vilnius railway hub and the Kaišiadorys-Klaipėda line was greenlighted by a governmental commission vetting strategic deals with implications to national security.

On Thursday, Lithuanian Transport Minister Jaroslav Narkevič, who initiated the tender's audit, presented his preliminary conclusions. He plans to make a decision on the final outcome next week.

Read more: Lithuania's €363m railway electrification stalls over tendering process

The minister said the tender took place ineffectively, but initiating a new one, would mean Lithuania loosing 200 million euros in EU funding.

The deal between LG and Elecnor needs the approval of Narkevič as the state's representative and shareholder of LG.

Tomas Beržinskas, spokesman for the Lithuanian prime minister, told BNS the commission approved the deal on condition that its recommendations are taken into account, without specifying them.

Last month, Inabelec, a consortium of Spain's infrastructure construction group Elecnor and Abengoa's engineering subsidiary Instalaciones Inabensa, won the 366-million-euro contract.

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