RIGA - The Baltic states' joint venture RB Rail, which coordinates the Rail Baltica railway project, has submitted an over EUR 325 million funding application for the latest Connecting Europe Facility (CEF) call in this budget period, LETA was told at the company.
In Latvia, the focus is on the next phase of construction on the southern section of the Rail Baltica mainline (from the Lithuanian border to Salaspils). This includes the construction of 14.2 km of railway embankments. Additionally, the application includes the first phase of technical design for the Rail Baltica electrification project in the section from the Latvian-Lithuanian border to Upeslejas, as well as support measures for project implementation.
At a meeting of the Saeima Economic, Agricultural, Environmental and Regional Policy Committee on Wednesday, Transport Minister Kaspars Briskens (Progressives) indicated that Latvia expects to raise an estimated EUR 160 in CEF funding. "We cannot apply for more funding, because in this seven-year budget we are close to the maximum amount that we could theoretically be entitled to," the minister said.
In Lithuania, the scope focuses on several strategic elements, including the three structures in the Kaunas Urban Node Railway mainline section, full-scope ENE technical design from the Latvian border to the Polish border, design of regional stations, and executive design services. The plan also includes land acquisition for 30 percent of the section between the Polish border and the Kaunas Urban Node.
In Estonia, the application includes the construction of a 10.1 km double-track embankment from Karpla to Selja, involving construction work for the railway substructure and civil engineering structures.
According to RB Rail, alongside national activities, Rail Baltica is also continuing the cross-border activities to be implemented by the joint venture RB Rail AS and co-financed by all three Baltic states. RB Rail AS will continue to global project coordination through system engineering, comprehensive management activities, including action management, global project coordination, planning and verification, and ENE technical design support measures.
In September 2024, the European Commission announced the final call for funding under the Connecting Europe Facility (CEF Transport) for the 2021-2027 period. Results are expected by July 2025, with funding agreements finalized in the fall.
The joint venture says that in Latvia, a framework agreement for mainline civil works was signed last year, covering 228 kilometers, with initial construction set to begin on a 40-kilometer section near the Lithuanian border. In Estonia, construction contracts cover 73.87 kilometers of railway embankment, with an additional 32.59 kilometers planned for tender in the upcoming weeks. In Lithuania, construction is ongoing for 46.3 kilometers of mainline embankment and engineering structures, a tender has been launched for additional 12.1-kilometer section, with additional tenders planned to be launched in 2025, starting works in total of 114 km this year.
RB Rail notes that currently, approximately 160 kilometers of the mainline and associated infrastructure are under construction in all three countries. With ongoing procurement processes for key railway subsystems and the current pace of work, Rail Baltica expects to have 43 percent of the mainline ready for construction by the end of 2025.
The project has already secured over EUR 4 billion in funding, with significant contributions from the EU and member states. To address rising costs driven by inflation, Rail Baltica is exploring new funding mechanisms, including concession-based procurements and leveraging EU military mobility funds.
RB Rail CEO Marko Kivila notes that the competition for this Connecting Europe Facility funding call is incredibly strong. However, we remain optimistic about a positive outcome, as this financing is critical for accelerating Rail Baltica's construction progress across Estonia, Latvia, and Lithuania.
"Securing this funding will help us take significant steps toward completing this vital infrastructure, which connects the Baltics to the European rail network and strengthens regional connectivity," Kivila said.
As reported, on January 14, the Latvian government approved the Rail Baltica international railway project's application for additional European Union (EU) funding. In the closed part of the meeting, the government heard the Transport Ministry's report on the Rail Baltica project activities prioritized by Latvia in the Baltic states' application for funding from the Connecting Europe Facility (CEF) under the 11th call for proposals (CEF11).
In September 2024, the European Commission (EC) announced the 11th call for proposals for CEF funding, the main source of funding for Rail Baltica so far. A total of EUR 1.2 billion is available from the Cohesion Envelope to support rail infrastructure projects, with an aid intensity of up to 85 percent. This support is only available to the Cohesion Fund's member states. It is also the last call for projects in the EU 2021-2027 programming period, where applications will be assessed on their European relevance and level of maturity.
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