Passenger transportation companies warn about suspending services in regions due to insufficient financing
RIGA, Oct 18 (LETA) - The Latvian Association of Passenger Services Providers (LPPA) calls on the Cabinet of Ministers to urgently decide on allocating EUR 14 million for public transport services in order to ensure uninterrupted services in the regions.
The association's president Ivo Osenieks told LETA that in October public transport services companies operating routes in regions have not received the advance payment from the Road Transport Directorate (ATD).
According to the agreement signed with the Cabinet of Ministers, the advance payment should amount to 95 percent of losses incurred by the transportation companies, but ATD has been ignoring the normative acts.
The association therefore calls on the government to urgently decide on allocating additional funding, and the Transport Ministry has been asked to assess the ability of ATD administration to successfully manage the sector.
If the transportation companies by November 10 are not paid for the services provided during the previous months and an advance payment for Novembet at the amount of 95 percent of the losses, the companies will be forced to suspend their services or provide them at the level ensured by the available financing.
- Published: 18.10.2021 13:42
- Lauma Marenda Niedrīte, LETA
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Passenger transportation companies warn about suspending services in regions due to insufficient financing