Rail Baltica chief executive quits

Take note – story published 5 years ago

Rail Baltica chief executive and chairperson of the board Baiba Rubesa announced September 27 that she is resigning from her posts.

A statement issued shortly before 10 a.m. by her personal representative Santa Čiževska said:

"I would like to inform you that today, 27 September 2018, Baiba A. Rubesa, CEO and Chair of the Management Board of the Baltic State's joint venture RB RAIL AS, submitted a resignation letter to the Supervisory Board of the joint venture, effective immediately."

Since October 2015 B. Rubesa has been acting as 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, the 6-billion-euro Rail Baltica project.

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 provided the explanation for her resignation, based on "the different and irreconcilable vision for further project management and implementation model," according to the statement. 

But her parting shot gives a slap in the face to the direction Rail Baltica is heading.

"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," Rubesa wrote.

"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 Rubesa.

The move was not entirely unexpected following recent speculation. Nevertheless it represents a major test for the project as a whole as Rubesa was seen as a non-partisan figure committed to transparency on the 6 billion euro infrastructure project.

Following news of the resignation, the RB Rail AS Supervisory Board appointed Ignas Degutis, Chief Financial Officer and Member of the Management Board in the capacity of RB Rail AS Interim CEO.

“There is a potential to accelerate the project implementation. RB Rail continues to work in full capacity and is focused on progressing with the detailed technical design for all sections of the railway as well as finalising the long-term business, operational and infrastructure management plans of Rail Baltica which will determine the future success of the project”, said Degutis.

”In addition, we are continuously working towards the long-term financing of the Rail Baltica Global Project and a sustainable funding for the joint venture’s budget in 2019-2020,” he added.

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