Modernisation of Signalling System  Project No. 2001/LV/16/P/PT/006

EU Monitoring Committee meeting:

EC, MoT, MoF, LDz

07.10.2008

1. Project costs (EUR):

Cohesion Fund contribution: 67 463 223 Total eligible costs: 92 982 670 Total project costs (without VAT): 92 982 670 Totally paid: 17 385 218

Percentage of CF contribution: 25,8 % Percentage of total eligible costs: 18.7 %

2. Contracts – statuss of progress

Stage 1: Works contract: 47 597 197,00 Supervision contract: 2 486 800,00 Totally paid: 13 095 350,79 EUR (26,15 %)

Stage 2: Works contract: 40 999 173,25 Supervision contract: 1 899 500,00 Totally paid: 4 289 867,32 EUR (9,99 %)

Status of Progress – Stage1: Cable laying in open lines Livberze – Jelgava completed (final part of Tukums – Jelgava

open lines, 50km), cable connection not completed Trenching and cable laying in Livberze nearly completed, Slampe station ongoing Indoor equipment installation in container in Livberze station completed, no design

documents available

None of physical indicators is completed yet Eventual completion is exepted January 2009 (Contractor’s

optimistic forecasts) – station Livberze: Installation of 1 Interlocking system Installation of 1 Level Crossing system Installation of 13 new signals Installation of 5 sets of point machines

3. Reasons for delays: Stage 1

Insufficiency of Contractor’s human resources (quality and quantity)

Insufficiency of Subcontactors Insufficiency of Contractor’s knowledge of

Latvian legislation and LDz specific

4. Contingency Plan: Stage 1

Reducing scope of the Contract: Exclude 10 kV line Exclude Dismantling

Project management: Extend project for 1 more year

Reducing scope of the Contract with LDz involvement: Buildings: perform building refurbishment and construction for 28 of 32

stations by LDz free of charge Point heating equipment installation Simplifying technical solutions: Level Crossings: reuse existing equipment Battery backup: to use UPS on station instead of battery for entrance

signals and level crossings Trenching and conducts: not install pipe cable canalisations for 21 out of

32 stations Track circuits: division of responsibility

Administrative measures Contractor’s resources:

Additional personell to be involved Intention to involve more sub-contractors

5. Implementation Schedule

Stage 1:Construction part planned completion – end of 2010

New Master Plan agreed Stage 2:

Planned completion May, 2010