Latvia has so far raised €1.4 billion for the Rail Baltica project, including state co-financing. European co-financing is 85%.
This year Latvia received an extra €364 million for the construction of the main line. To absorb this, more funding will be needed from the state budget and it has already been decided to look for private investors.
Ojārs Daugavietis, Global Project Finance Manager at RB Rail, said that a contract has been signed with a Canadian company to study how to use private-public partnerships, looking at examples from other countries.
"We have started negotiations on the Riga Ring. The first indications are that yes, there is a possibility to continue negotiations. What are the exact criteria, the type of rate and so on - that is the next step, which is planned for the end of this year. That is November, December," Daugavietis said.
In the meantime, it is necessary to agree with the Ministry of Transport which are the parts of the project that are interested in going further in this direction. Daugavietis also added that one private partner will not be able to cover everything, so several options have to be sought. Negotiations with potential private partners could take place at the end of this year.
The section of Rail Baltica from Riga southwards, or towards the Lithuanian border, has the highest readiness at the moment, with funding secured for 40 km and the contractor ready to build - this has been approved by the European Commission.
The second most ready section is the northbound section. Funding is also available from Misa to Upeslejaas - about €100 million has been received for the design and work is underway. In the Riga Ring, there are several sections where work is already underway, but other sections have not even been designed yet.
The Ring of Riga cannot be fully completed by 2030 due to lack of funding. Therefore, a technical working group has been set up in the Ministry of Transport, including SJSC Latvian Railways, to start using the existing track gauge for transport.
The Members of the Saeima Commission had many questions about the economic feasibility of this project, the commitments made by the State and the amount of money still needed. Without having received answers to all the questions, the Saeima Public Expenditure and Audit Commission decided today to return later this month to assess the implementation of Rail Baltica.
