Nordic Investment Bank (nib) has agreed to grant a €53m loan to Lithuanian rail company AB Lietuvos gelezinkeliai for the construction of new tracks and rail corridors upgrades in the country.
The new 18-year loan agreement will facilitate construction of a 115km-long European-gauge railroad track, which is parallel to the existing wider-gauge line from Kaunas to the Lithuanian and Polish border.
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The track is being built as part of the future Rail Baltica route and is expected to pave way for a direct link with the railroad network of Poland, as well as allow passenger and freight transportation to other EU countries.
The funding will also cover modernisation of the Trans-European east-west corridors in Lithuania.
AB Lietuvo previously received a €114m loan in June 2013 for the same project as part of the future Rail Baltica route.
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As a state-owned company, Lithuanian Railways administers the public railway infrastructure and provides freight and passenger transportation services.
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By GlobalDataThe main commodities transported on the country’s 1,767km-long railway network are mineral fertilisers, as well as oil and its related products.
Image: Lithuania’s total railway network measures 1,767km. Photo: courtesy of AB Lietuvos gelezinkeliai.
