Although an information report on the future of Rail Baltica has been submitted to the government, they have not yet been considered, with the Prime Minister stating that they had not been submitted in due time.
Ašeradens explained in an interview with LTV that the contract prepared for the main route provides for very extensive construction work. "The structure of the contract provides that no concrete works have been auctioned at this time, but tells us how much a cubic meter of land will cost. We believe that the contract should still be reviewed by experts so Latvia can understand at what point the state becomes responsible for participation in this project," the minister said.
The politician explained that he wished to have confidence that the state would not be obliged to finance some stages from the budget if it fails to attract European Union funding to them.
The contract amount was estimated at 3.7 billion euros. The estimate of the total amount of Rail Baltica is not yet known to Ašeradens.
He also noted that Latvia must submit an application for the next financing stage in this project by the end of January. “At this point, we are explaining the scenarios under which we will move forward. And from these scenarios, we will understand the extent of the cost, “said Ašeradens.
The Minister also pointed to the need to understand the economic return of the project if the state has to participate in co-financing it.
In October, the government allocated more than 18 million euros to complete the design of the Rail Baltica railway line in four stages in Latvia, and additional funding is still needed for the design of several more stages.
To absorb the already allocated EC funding in full, the design works must be completed by December 31, 2024. Likewise, the completion of design works is an essential prerequisite for attracting further EISI funding for the Rail Baltica project and for the continuation of construction works on the main line, according to the Transport Ministry.
Originally budgeted at 5.8 billion euros, the current estimate for the total cost of Rail Baltica is 7.8 billion euros – though given current trends it would not be surprising if the figure is revised upwards again in the future. 85% of the funding is supposed to come from the European Commission with the Baltic states each contributing an additional 5%.
