Monday , July 4 2022

Approves Indicative Railway Infrastructure Development Plan for Five Years / Day


A prerequisite for an indicative plan is to provide a competitive rail infrastructure. The total network capacity is not planned to be increased, but resources for maintenance and development projects are being invested in order to maintain the existing volume of services and consistently high quality.

Although the Indicative Plan is not a financial document, the plan defines a three-stage system model for ensuring the financial equilibrium of the infrastructure manager. The first stage involves the involvement of market participants in the provision of infrastructure costs. The second stage determines the use of the resources of the LDz Group for ensuring financial equilibrium, and only the third stage, if necessary or in the interests of the national economy, involves the involvement of state budget funds.

The Infrastructure Manager (LDz), with the adoption of the Indicative Plan and approval of the multiannual agreement, will ensure the stability of the railway infrastructure for public utilities for the next five years. This guarantees transparency for participants in the transit sector and allows them to conclude five-year contracts with shippers.

Upon approval of the Indicative Plan, the requirements of Section 6 of the Railway Law are fulfilled, which stipulates that the public public railway infrastructure is developed in line with the needs of the economy and its development, stable traffic interests, as well as environmental protection requirements. At the same time, the requirements of the fourth part of Section 9 of the Railway Law are being met: it is planned to define the infrastructure requirements and the mechanism for reaching the financial equilibrium of the railway infrastructure manager, the state budget programs 31.00.00 Public transport sub-program 31.04.00 Funding for railway public infrastructure Separate financing plans have been separated into the provision of financial equilibrium, the maintenance of passenger railway stations and stop points for infrastructure and other purposes, thus ensuring transparency and stability for market participants. With the approval of the plan, a minimum amount of state budget funding is foreseen for ensuring the financial equilibrium of the public railway infrastructure manager.

Infrastructure financing structure and procedure, sector investment projects and measures for reducing infrastructure costs are regulated in the Multi-annual agreement between the state and LDz.

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