Railways before financial collapse, call for government assistance

Kosovo Railways Infrastructure Board of Directors “INFRACOS” today has held an extraordinary meeting, where it has reviewed the serious financial situation the company has been facing for a long time, as well as the possibilities of overcoming this situation.

“The Board of Directors and INFRAKOS Management has consistently demanded from the competent state institutions the payment of the network access gap caused by reduction of tariffs by the Ministry of Infrastructure. Paying this difference is defined with the Law on the Railways of Kosovo, where we annually get the value of about 1. Eight million Euros. Despite successive demands, however, Infrakos has never received adequate legal payment. While, if the legal obligation were done, the company would function without a problem and have financial liquidity. For the sake of direct information of public opinion, we want to stress that everywhere in other countries (region, Europe and beyond) the railway infrastructure is supported and subsidised by the state itself, as it is not a profitable field, while it is strategic infrastructure that enables economic development through transport of goods, as well as public service for citizens through the railway transport of travelled”, says the IMFRACOS communiqué.

According to INFRACOS, the first few days of passenger trains from the only company in transportation of passengers, Trainkos, has also burdened this financial situation. Infracos already does not realise the few tools that have been run so far by the railway operator Trainkos. With this, it is definitely at risk of cutting off operations for all other travel and cargo lines, due to the lack of access to security in railway communications.

“The Board of Directors also expresses concern that this situation could cause the risk and deadlock in implementing strategic development projects that are being supported by the EBRD, the BEI, the European Commission and the Government of Kosovo for the rehabilitation of the 10th Iron Line and other lines, even though Infracos is working hard not to have obstacles to the implementation of these projects.

With an extraordinary and professional commitment to drafting development projects for rehabilitation and modernisation of railway lines, Infrakos a few days ago has benefited another donation/grant from the Western Europe Investment Framework, worth 1.1m euros, for the feasibility study for the “Pristina International Airport”. This project is of particular priority and importance for Kosovo because the way for connecting Pristina International Airport and railway to the country's capital” opens up, the IFRACOS communiqué says.

Based on these that were highlighted above, INFRACOS calls on the State Competent Institutions, the Ministry of Infrastructure, the Ministry of Economic Development, the Government of Kosovo, to take urgent action in covering the legal obligations set out with the Law on Railways, respectively to pay for the difference in railway network for 2017, so that I can enable the company's functioning, not create social problems with employees, as well as not having problems implementing the above-than strategic development projects, for which company staff is working for a long time, and which projects are received by large international institutions and local institutions.

“Bandor of directors and management states that Infracos has acquired all financial opportunities dependent on this company and cannot do anything in overcoming the existing situation without the Government's carrying out legal obligations, as provided with the Law on Railways. The Board of Directors informs competent institutions and public opinion of the serious situation and measures to be taken to overcome this situation, which Infrakos does not take responsibility for”, the INFRACOS communiqué says.