TALLINN - In his annual address to parliament on infrastructure development on Tuesday, Estonian Minister of Infrastructure Kuldar Leis said that the construction of the Rail Baltic railway connection is a national priority.
"Construction is under way or starting this year along 100 kilometers of track. The goal is to have work ongoing across the entire main route by the end of next year. About two weeks ago, we signed the largest infrastructure contracts in Estonia's history, totaling nearly one billion euros," Leis said.
The minister noted that Rail Baltic's financing is phased. The project's total cost is 3.07 billion euros, of which Estonia's share is about 600 million.
"We have drawn from several sources, mainly the Connecting Europe Facility, but also carbon dioxide quota revenues, recovery funds, and structural funds. We are working to ensure continued EU funding in the coming years," the minister said.
Leis also addressed the local road network. An additional 70 million euros will be invested in roads that support business activity and improve safety.
"We have decided to begin construction this year on 2+2 highway sections between Tallinn and Pärnu, and next year we will continue with the Tallinn-Tartu route," he said.
Investments will also be increased for smaller roads to improve access to industrial zones and ports and to boost bridge load capacities. Extra funding will go toward paving gravel roads.
"We must ensure that infrastructure supports life and the economy in every part of Estonia. A new investor will not go where there is only a gravel road," said Leis.
In the circular economy, implementing the waste reform is a key step.
"The goal is to create a functioning, fair system where waste is no longer buried or incinerated but becomes new raw material and industry," Leis said. Plans include establishing a producer responsibility system for textile waste, simplifying biowaste recycling, promoting reusable dishware, and allocating 14 million euros to develop recycling industries.
On housing, Leis stressed the importance of state support for apartment renovations and home loans.
"We face a major challenge -- upgrading much of our housing stock from the last century. Apartment buildings are in the worst shape, about 14,000 of them need renovation by 2050," he said.
He said stable funding for the sector is agreed upon through carbon dioxide quota revenue, and Estonia is negotiating with the European Commission to direct Social Climate Fund money to households with lower incomes.
State housing loan guarantees will also be increased and extended to underserved regions to help young families and residents outside major centers. Leis added that construction and occupancy permit procedures will be streamlined, and building regulations updated to emphasize energy efficiency, street space quality, and accessibility.
In maritime affairs, Leis emphasized sea safety and maintaining connections under difficult conditions.
"We are working to mitigate risks from the shadow fleet and violations of international law. Shadow vessels are like cars without inspection or insurance -- no one knows if they are safe or what damage they might cause." Estonia will build a new multifunctional icebreaker that can also repair subsea cables.
"We must avoid repeating the recent case where fixing Estlink 2 took over half a year and nearly 60 million euros because the repair vessel and crew had to come from far away," Leis said.
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