December 21, 2015

Lithuanian Railways secures €50m loan

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LITHUANIAN Railways (LG) has signed a €50m loan agreement with the Nordic Investment Bank (NIB) to aid the funding of various railway infrastructure improvement projects.

The 15-year agreement will support LG's planned Litas 5.11bn ($US 1.68bn) investment plan from 2014 to 2020. Works include enhancing the existing 1435mm-gauge Rail Baltica corridor from the border with Poland to Kaunas and extending the link to the Latvian border, electrifying the Vilnius - Kena, Belarus border line, track-doubling on the Valčiūnai - Kyviškės bypass of Vilnius, and electrification and improvements to the Kaišiadorys - Radviliškis line, including track-doubling on five sections.

The loan is LG's fifth with NIB since 2009 and takes its total borrowing with the bank to €216m. It is also set to borrow up to Litas 3.09bn from European Union sources to support the investment strategy.

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