Baiba Rubesa resigns today as the CEO and Chairperson of the Management Board of RB RAIL AS

Since October 2015 B. Rubesa has been acting as a Chairperson of the Management Board and CEO of RB RAIL AS – a joint venture founded by Estonia, Latvia and Lithuania to implement the most significant railway infrastructure project in the region, namely Rail Baltica. October 28 this year was set as the official deadline for her term of office as the Management Board members are elected for a term of three years.

In her resignation letter submitted today to the Supervisory Board of RB RAIL AS, Rubesa has provided an extensive and detailed explanation behind her resignation, based on the different and irreconcilable vision for further project management and implementation model.

“In the past three years it has been a profound honour and unique professional experience to be charged with establishing a new institution, the joint venture RB RAIL AS, to deliver the Rail Baltica Global Project as a cross-border infrastructure project of strategic importance to the European Union and North East Europe, especially Estonia, Latvia and Lithuania.

The issues of the current organization model of the project in which I am forced to operate is blatantly contrary the principles of good corporate governance. The conflicts of interests encapsulated in the very roots of the project are the main reason behind the actions and/or inactions of all involved parties. It is not compatible with my faith and belief in fair and responsible project implementation.

The current “de facto” Rail Baltica Global Project governance as executed by the Beneficiaries and Shareholders is neither manageable nor sustainable to deliver a new economics and security corridor with infrastructure that has a commitment of 85% financing from the European taxpayer. Despite continuous discussions with Beneficiaries and Shareholder representatives for over a year, the company still faces a lack of common commitment to a sustainable financing model for the joint venture as well as for the Global Project”, said B. Rubesa.

“I thank the Management Board and the entire staff of RB RAIL for their commitment above and beyond the call of duty to deliver on the project activities as agreed in the past three Connecting Europe Facility (CEF) grant agreements. Together we have forged a strong vision for Rail Baltica as a future driven, innovative new economic corridor and have started to deliver on this vision.”

“I am also grateful to the European Transport Commission (DG Move) for their sustained and unwavering support for the project, to myself and for sharing a common vision of the project – to build a new economic corridor in North-East Europe. I have no doubt that their deep engagement and support for the joint venture ensured the Rail Baltica Global Project could come as far as it has.”

Main milestones of the Rail Baltica project met under the strategic and visionary guidance of Baiba Rubesa:

● Attract financing from the EU funding instruments – CEF1, CEF2, and CEF3, in the amount of 743 million euros that covers up to 85% of total eligible costs

● Reach agreement on a precedent setting Contracting Scheme for the Rail Baltica project that defines project related procurement responsibilities and roles

● Gain approval for Rail Baltica Design Guidelines – the common design standard mandatory for design, construction and operations of the project infrastructure

● Reach the Design Phase for the project

● Finalising the Cost-Benefit analysis, proving financial feasibility and viability of the project

● Complete the Lithuanian Upgrade Feasibility Study

● Establish a solidly positive reputation for the three Baltic countries and the Rail Baltica project with key European stakeholders: the European Commission, European Parliament, ERA, UNIFE, CER, Shift2Rail – and beyond

● Establish the Rail Baltica Global Forum as a key Baltic event, which in turn has engendered high acknowledgement and strong support from the global supplier industry relevant for the project

● Stakeholder management has embraced engagement with “Friends of Rail Baltica” in professional organizations as well as national business organizations of different interests. Moreover, in all locations that RB Rail has visited in the past years we have engaged with Finnish, Estonian, Latvian, Lithuanian, Polish and other embassies, ensuring adequate information about the totality of the Global Project and to be able to attract a relevant supplier industry to the project

● Introduce common Rail Baltica Procurement standards and qualifications mandatory to the entire project that include national and EU normative standards and is based on “best practice” for procurement

● Establish a professionally recruited Management Board and organization from 5 European countries, also promoting re-emigration of highly skilled professionals and experts

● Extend the dialogue with Finland and Poland for future cooperation in the implementation process of the Rail Baltica project

To inform about the resignation and answer questions, Baiba A. Rubesa, already in private capacity, will hold a press briefing for media representatives. It will take place today, September 27, at 11:30. A live stream will be available here: https://www.facebook.com/BRubesaPressConference/

For more information:

Santa Čiževska

Representative of Baiba A. Rubesa

Mob.:+ 371 26416703

E-mail: BRubesarep@gmail.com