"The Rail Baltica joint venture RB Rail AS has announced the signing of two new agreements under the Connecting Europe Facility (CEF), which will greatly accelerate the implementation of the Rail Baltica project," said RB Rail. The project is currently years behind schedule, so the promise of "greatly accelerated" progress is sure to be one which is tracked closely.
The funding provides 1.394 billion euros, including about 1.163 billion euros from the CEF and 231 million euros in co-financing from the three Baltic States.
However, the money is not a new announcement on top of existing commitments: the results of the latest CEF call were announced in the summer of 2024, though the amounts allocated to all three countries have risen slightly. The latest development is simply that the necessary agreements related to the previously-announced funding have now been signed.
Nevertheless, RB Rail was keen to talk up the financial commitment as evidence of the importance of completing the project for strategic as well as financial-viability reasons. Increasingly, Rail Baltica's military supply utility is being stressed as a key reason for its completion.
“EU support has been instrumental for the three Baltic States in transforming Rail Baltica from an ambitious vision into a tangible reality, and this funding is not just an investment in infrastructure; it’s an investment in a more connected, resilient, and unified Europe,” said Marko Kivila, interim CEO at RB Rail AS.
“The project is now preparing to apply for the final funding call for proposals within the current financial period (2021-2027) and will work closely with national partners across the Baltic region to secure a strong position in the upcoming EU budget negotiations,” said Kivila.
In Latvia, the main priority is the construction of the core route from Misa to the Latvian Lithuanian border, with additional funding granted for a segment approximately 27 kilometers long.
Funding has also been allocated for construction supervision, the establishment of a high-voltage connection point in Iecava, and an infrastructure maintenance facility in Skulte, which will serve as a construction logistics base for the development of the route towards Estonia.
Funds are also earmarked for property acquisition in the Skulte section and the relocation of the natural gas pipeline along the Vangaži-Misa section. Under this CEF funding agreement, Latvia has received approximately 337.6 million euros from the CEF and 59.5 million euros in national co-financing, amounting to 397 million euros.
Estonia has received financing for approximately 58 kilometers of the mainline, with around 352 million euros from the CEF and 88 million euros from national sources, totaling about 440 million euros.
Lithuania has received about 450 million euros from the CEF and 79 million euros in national contributions, totaling roughly 529 million euros for these construction activities.
Additionally, funding is allocated for the design of Rail Baltica’s electrification subsystems and
various other design work.
Rail Baltica is planned to be a fully electrified, double-track railway with a standard European gauge of 1435 mm and a design speed of 249 km/h. Originally expected to cost 5.8 billion euros, estimated costs have more than trebled, while at the same time the specifications for the first stages of construction have been pared back in an effort to save costs.
The project has been particularly troubled in Latvia with a parliamentary commission probing overspends and missed deadlines. Construction work related to Rail Baltica is evident at several locations in and around Rīga, but final decisions on how precisely it will all be connected up and when remain to be taken.
