Vivi imposes €5.7 million penalty on Škoda Vagonka for electric train delivery delays
Latvian passenger train operator Vivi (Pasažieru vilciens) will fine Czech manufacturer Škoda Vagonka €5.7 million for late delivery of electric trains and unresolved defects.
AS "Pasažieru vilciens" (PV), operating under the brand "Vivi", has decided to impose a contractual penalty of €5.7 million on Czech company "Škoda Vagonka". The penalty stems from delays in the delivery of electric trains and failure to rectify identified defects within stipulated deadlines, PV board chairman Raitis Nešpors told LETA.
During the contract execution, external factors including the COVID-19 pandemic and the war in Ukraine affected the project. Although the delivery deadline was extended due to these circumstances, the new deadline was still missed. PV reviewed Škoda Vagonka's explanations and documents, as well as assessments from independent consultants — audit firm PricewaterhouseCoopers and law firm BERG. Based on this evaluation, no legal grounds were found to waive the contractual penalties.
The €5.7 million penalty covers late delivery, defects not corrected on time, and other breaches of contractual obligations. Nešpors emphasized that this decision does not diminish the project's importance for Latvian passenger transport development or Škoda Vagonka's contribution. All 32 electric trains have been delivered and have significantly boosted passenger numbers — from 17.1 million in 2023 to 21.3 million in 2025, a 25% increase. Train punctuality stands at 98.4%, one of the highest rates in Europe.
The last electric train was due by July 31, 2024, but was actually delivered on November 13, 2024. Each train consists of four cars, is 109 meters long, and has 436 seats and 454 standing places. The total procurement cost was €244.846 million, of which €168.191 million came from the European Union’s Cohesion Fund. PV was established in 2001 and became a state-owned enterprise in 2008.
