The EU says this will increase lines speeds, align Latvia's infrastructure with the requirements of EU and national regulations for the development of core railway network and improve air quality in the long-term.

“The EU is funding a modern rail system in Latvia. By cutting costs and travel times, this Cohesion Policy project will boost jobs and Latvia’s economy by facilitating transit traffic and trade through the Baltic States,” says EU transport commissioner, Ms Violeta Bulc. “At the same time, Latvians will breathe cleaner air and it will improve road safety.”

The project includes the electrification of the Riga - Krustpils, Krustpils - Daugavpils and Krustpils - Rēzekne lines.

Only about 14% of Latvia’s 1520mm-gauge 1860km-long network is currently electrified, substantially lower than the EU average of 55%. The project is expected to reduce the cost of maintenance by a third and allow speeds of up to 160km/h on the network.