Saeima deliberates Final Report of the Parliamentary Investigative Committee on the implementation of the "Rail Baltica" project

(18.12.2024.)

According to the Final Report of the Parliamentary Investigative Committee on the implementation of the "Rail Baltica" railway project, it is likely that trains will not be running in Latvia in 2030. The Saeima reviewed the Final Report of the Investigative Committee on Wednesday, 18 December.

"We have worked for six months to unravel the greatest irresponsibility in Latvia's recent history – the 'Rail Baltica' project. We have drawn conclusions about mistakes, identified those responsible, and developed proposals on how to get the project back on track. However, our work is not over, and immediate action must be taken to implement proposals for clear accountability and effective project management," said Andris Kulbergs, Chair of the Parliamentary Investigative Committee on the "Rail Baltica" project.

In the summary of the Final Report, the Investigative Committee pointed out significant mistakes at the very beginning of the project, deficiencies in the national study group’s work in determining the location of the "Rail Baltica" route in Latvia, the lack of project financing management and cost monitoring, as well as the lack of oversight of the project at the government level.

The Committee also pointed out that employees involved in the project lacked experience in cross-border high-speed rail projects, and there was no consideration of experience from other similar projects in Europe to predict the real project implementation timeline and costs. As a result, the project’s implementation deadline was mistakenly set for 2026, and the estimated cost was set at 1.9 billion euros.

"The most significant conclusion of the Parliamentary Investigative Committee: Latvia’s legal framework, governance system, inter-ministerial cooperation failures, lack of financial oversight, and the lack of involvement of prime ministers and ministers – this combination of factors effectively left the strategic and political decision-making and responsibility for this large project in the hands of the bureaucracy. The government’s lack of experience, the absence of large project management procedures, lack of interest, and the refusal to take responsibility have led to a dramatic outcome with long-term financial consequences for the state," the Final Report stated.

In the Final Report, the Committee has included an assessment of the responsibility of officials, including former officials, who contributed to the delay in the implementation of the "Rail Baltica" project. The Committee concluded that the involvement of the prime ministers and other responsible ministers in overseeing and coordinating the "Rail Baltica" project did not take place, and the project was managed solely by the Ministry of Transport. The Committee also noted the insufficient involvement of the Ministry of Finance in risk management and financial control.

The Final Report includes 16 recommendations, and it also states that after the Committee’s work concludes, the Saeima should continue its parliamentary oversight of the "Rail Baltica" project. This would provide an opportunity to answer previously unanswered questions and to provide the public and media with comprehensive information about the ongoing project.

The Investigative Committee worked for six months, holding 26 meetings, with its main task being to determine the reasons for the project’s delay of at least three years and the responsibility of officials from the Ministry of Transport, Ministry of Finance, and Ministry of Economics, as well as the state-owned companies in which the Ministry of Transport holds shares.

The Committee also assessed the sources of costs, the current project timelines, significant processes, inter-sectoral cooperation and decisions that need to be made at inter-sectoral formats and government levels, as well as the project implementation plans and upcoming activities, including responding to the unacceptable situation where information is being withheld from the public, or officials are providing contradictory information.

The Parliamentary Investigative Committee was established on 13 June of this year at the initiative of 34 MPs. Its task was to identify the mistakes made in the implementation of the "Rail Baltica" project while ensuring that it becomes a priority Government issue, with decisions made transparently and on time, taking into account the interests of the Latvian state and society, as well as the impact on the national economy and state budget. The Committee was chaired by Andris Kulbergs, and included the following members: Kristaps Krištopans, Skaidrīte Ābrama, Artūrs Butāns, Atis Labucis, Amils Saļimovs, and Ģirts Štekerhofs.

 

Saeima Press Service

Svētdien, 22.decembrī