LIETUVOS RESPUBLIKOS

LIETUVOS RESPUBLIKOS REPUBLIC OF LITHUANIA LAW ON the railway transport sector reform 8 April 2004 No IX-2104 (As last amended on 22 December 2009 – No XI-618) Vilnius CHAPTER ONE GENERAL PROVISIONS Article

1. Purpose and Scope of the Law
2. The Law on the Railway Transport Sector Reform shall establish the objectives of the railway transport sector reform, the procedure for and stages of implementation of the reform, specific aspects of activities of the public railway infrastructure manager during the reform process as well as supervision of such activities, also the sources of funding of the upgrading and development of the public railway infrastructure.
3. The railway transport sector reform (hereinafter referred to as the “reform”) shall be implemented in accordance with this Law; other laws of the Republic of Lithuania shall apply to the extent that this Law does not provide otherwise.
4. The provisions of this Law shall be in compliance with the EU legal acts listed in the Annex to this Law. Article
5. Definitions
6. “Railway transport sector” means a part of the Lithuanian transport system used for the carriage of passengers, luggage and/or goods by rail.
7. “Public railway infrastructure” means a railway infrastructure which is intended to meet the needs of the public as well as economic entities (carriage of passengers, luggage and/or goods) and which is owned by the State of Lithuania.
8. “Public railway infrastructure network statement” (hereinafter referred to as the “Network statement”) means an informational publication prepared and issued by the public railway infrastructure manager which describes the public railway infrastructure accessible for railway undertakings (carriers), the terms and conditions of access thereto, the principles of collection of charges for the use of the public railway infrastructure, the amounts of the charges, the principles of, procedure for and criteria of allocation of public railway infrastructure capacity.
9. “Public railway infrastructure manager” means an undertaking of the Republic of Lithuania which lawfully manages and maintains the public railway infrastructure and provides related services to railway undertakings (carriers).
10. Other definitions used in this Law shall be used within the meaning of the Law of the Republic of Lithuania on the Principles of Transport Activities, the Railway Transport Code of the Republic of Lithuania and the Law of the Republic of Lithuania on Railway Transport Traffic Safety. Article
11. Objectives of the Reform The reform shall have the following objectives: 1) to ensure efficient operation of the railway transport sector under market conditions; 2) to create legal and economic conditions for the construction, upgrading and development of the public railway infrastructure so that it is in compliance with the requirements set forth for European railway network; 3) to ensure a free and non-discriminatory use of the public railway infrastructure; 4) to ensure the financial stability of the railway transport sector; 5) to keep separate accounts for business relating to the carriage of passengers, luggage and goods and for business relating to the supervision and management of the public railway infrastructure. Article
12. Stages of the Reform
13. The reform shall be carried out in two stages: 1) the first stage shall include the measures which are referred to in Chapter Two of this Law and which are necessary to prepare for the establishment of a state enterprise to manage the public railway infrastructure; 2) the second stage shall include the establishment of a state enterprise to manage the public railway infrastructure.
14. Specific time limits for each of the stages of the reform shall be set forth by the Government. Article
15. Continuity of Activities, Due Performance of Contractual Obligations of the joint stock company (JSC) Lietuvos Geležinkeliai and Assurance of Continuity Thereof The reform shall be carried out without disrupting the activities of the joint stock company (JSC) Lietuvos Geležinkeliai and by ensuring due performance of its contractual obligations as well as continuity thereof. Article
16. Funding of the Public Railway Infrastructure The programmes on the construction, upgrading and development of the public railway infrastructure approved by the Government shall be funded from the state budget, the loans received on behalf of the State and with a state guarantee, the charges collected for the use of the public railway infrastructure, also from the funds received from EU funds through state and/or municipal financial mechanisms for capital partnership as well as from an undertaking’s funds. CHAPTER TWO FIRST STAGE OF THE REFORM Article
17. Management of the Public Railway Infrastructure
18. JSC Lietuvos Geležinkeliai shall perform the functions of a public railway infrastructure manager as listed in paragraph 1 of Article 8 of this Law. JSC Lietuvos Geležinkeliai shall manage, use and have at its disposal by the right of trust the public railway infrastructure assets which are owned by the State.
19. The legal relations arising from the management, use and disposal of public railway infrastructure assets as well as from registration thereof in the real property register shall be established on the basis of a trust agreement concluded between the Government or the Ministry of Transport and Communications under the mandate of the Government and JSC Lietuvos Geležinkeliai. The trust agreement shall, inter alia, authorise JSC Lietuvos Geležinkeliai to register public railway infrastructure assets as state property and the right of trust to such assets in the real property register.
20. The state land whereon public railway infrastructure objects are located shall be transferred for use by the right of trust to JSC Lietuvos Geležinkeliai under trust agreements and in accordance with the procedure established by the Government.
21. Upon concluding the agreement referred to in paragraph 2 of this Article, JSC Lietuvos Geležinkeliai shall register public railway infrastructure assets as state property and the right of trust to such assets with the real property register and shall keep accounts of such assets.
22. Inventory and registration of public railway infrastructure assets shall be performed from state funds. Article
23. Distribution of Functions of the Public Railway Infrastructure Manager
24. JSC Lietuvos Geležinkeliai shall perform the following functions: 1) carry out a technical analysis necessary for the allocation of public railway infrastructure capacity to railway undertakings (carriers) and submit the results to the State Railway Inspectorate under the Ministry of Transport and Communications; 2) develop and publish the public railway infrastructure network statement; 3) collect charges for the use of the public railway infrastructure. These charges shall be utilised in accordance with the procedure laid down in the Law on the Principles of Transport Activities; 4) ensure the proper technical condition of the public railway infrastructure and a safe and uninterrupted traffic of trains; 5) organise train traffic within the public railway infrastructure.
25. The rules for levying of charges for the use of the public railway infrastructure shall be approved by the Government, while the actual amount of the charge shall be determined by the State Railway Inspectorate under the Ministry of Transport and Communications.
26. The State Railway Inspection under the Ministry of Transport and Communications shall, acting in accordance with the Rules on the Allocation of Public Railway Infrastructure Capacity approved by the Government, allocate public railway infrastructure capacity to railway undertakings (carriers) and approve train traffic schedules. Article
27. Examination of Disputes over the Allocation of Public Railway Infrastructure Capacity, Collection of Charges for the Use of the Public Railway Infrastructure and the Amount or Structure of Such Charges
28. Monitoring of competition in the railway transport sector shall be exercised and pre-trial disputes over the allocation of public railway infrastructure capacity, collection of charges for the use of the public railway infrastructure and the amount or structure of such charges shall be examined by the Competition Council of the Republic of Lithuania acting in accordance with the procedure approved by the Government.
29. Decisions adopted by the Competition Council of the Republic of Lithuania shall be appealed against in accordance with the procedure established by the law. Article
30. Specific Aspects of Activity of JSC Lietuvos Geležinkeliai
31. It shall be prohibited to use state funds and the funds of other institutions allocated for upgrading and developing the public railway infrastructure as well as for discharging public service obligations to finance other activities.
32. The facilities used for manufacturing purposes, engineering networks, community facilities, buildings and parts thereof which do not belong to the public railway infrastructure shall be transferred into the ownership of the State or municipalities in accordance with the procedure established by the Government. The authorised capital of JSC Lietuvos Geležinkeliai shall be reduced accordingly (by the value of the capital transferred) and the shares belonging to the State by the right of ownership shall be cancelled. CHAPTER THREE SECOND STAGE OF THE REFORM Article
33. Establishment of a State Enterprise to Manage the Public Railway Infrastructure
34. A state enterprise to manage the public railway infrastructure (hereinafter referred to as the “state enterprise”) shall be established by transferring thereto the public railway infrastructure assets which are managed by JSC Lietuvos Geležinkeliai by the right of trust and which belong to the State by the right of ownership. The authorised capital of JSC Lietuvos Geležinkeliai shall be reduced accordingly (by the value of the capital transferred) and the shares belonging to the State by the right of ownership shall be cancelled.
35. Together with the public railway infrastructure assets transferred by the right of trust to the state enterprise, a portion of financial liabilities of JSC Lietuvos Geležinkeliai which is proportionate to the assets transferred for the creation and renewal of the used portion of loans, as well as other obligations pertaining to the activities of the public railway infrastructure manager shall be transferred in accordance with the procedure established by the law. Public railway infrastructure assets transferred to the state enterprise shall be valued according to their residual value.
36. The state guarantees issued to banks to ensure the repayment of the loans granted to JSC Lietuvos Geležinkeliai for the upgrading and development of the public railway infrastructure shall extend to the obligations taken over by the state enterprise. Article
37. Functions of the Public Railway Infrastructure Manager upon Establishment of the State Enterprise
38. The state enterprise shall perform the functions specified in paragraphs 1 and 3 of Article 8 of this Law; it shall also determine the actual amount of charges for the use of the public railway infrastructure.
39. Upon establishment of the state enterprise, the State Railway Inspectorate under the Ministry of Transport and Communications shall perform the function of the Competition Council of the Republic of Lithuania referred to in paragraph 1 of Article 9 of this Law in accordance with the procedure approved by the Government. The decisions of the State Railway Inspectorate under the Ministry of Transport and Communications may be appealed against in accordance with the procedure established by the law. CHAPTER FOUR FINAL PROVISIONS Article
40. Proposal to the Government The Government shall adopt the legal acts necessary to comply with this Law within three months of its entry into force. Annex to Republic of Lithuania Law No IX-2104 of 8 April 2004 EU LEGAL ACTS IMPLEMENTED BY THE LAW ON THE RAILWAY TRANSPORT SECTOR REFORM
41. Council Directive 91/440/EEC of 29 July 1991 on the development of the Community’s railways (OJ 2004 special edition, Chapter 7, Volume 1, p. 341) with the latest amendments adopted by Directive 2007/58/EC of the European Parliament and of the Council of 23 October 2007 (OJ 2007 L 315, p. 44).
42. Directive 2001/14/EC of the European Parliament and of the Council of 26 February 2001 on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure and safety certification (OJ 2004 special edition, Chapter 7, volume 5, p. 404) with the latest amendments done by Directive 2007/58/EC of the European Parliament and of the Council of 23 October 2007 (OJ 2007 L 315, p. 44).