The largest infrastructure contract in Estonia’s history has been signed. The Rail Baltica project – Europe’s most ambitious high-speed rail development – has reached a new milestone: today, contracts were signed with two international consortia tasked with delivering two key sections of the Estonian mainline. With this, the entire Estonian section of the passenger mainline is now under contract, moving the project decisively toward its goal of launching high-speed rail services between Tallinn and Warsaw by 2030. Collaboration with top international players in the construction sector also brings world-class engineering expertise to Estonia and opens new opportunities for local companies.
“These contracts mark a new stage in the implementation of Rail Baltica – not just the beginning of a phase, but a turning point for the entire construction effort. The entire Estonian section of the passenger mainline is now under contract and under construction. This is the moment when the vision on paper becomes a continuous construction line,” said Anvar Salomets, CEO and Chairman of the Management Board of Rail Baltic Estonia.
“I am glad to see strong interest in the tender and that highly experienced international consortia made it to the final selection. This confirms that Rail Baltica is an attractive and strategically significant project even for the world’s leading infrastructure companies,” said Kuldar Leis, Minister of Infrastructure of Estonia. “Rail Baltica is not just a railway line – it is a critical investment in Estonia’s security and economic environment, strengthening our connection with Europe. Our goal is to complete Rail Baltica on time, and today’s contract signing is an important milestone on that path.”
The contract partners are:
- Section 1 (Alliance 1): GRK Eesti AS, GRK Suomi Oy, AS Merko Ehitus Eesti, NGE CONTRACTING, Sweco Finland Oy, Sweco Sverige AB, TSO SAS.
- Section 2 (Alliance 2): Bouygues Travaux Publics, Budimex S.A., INGEROP Conseil et Ingenierie (ICI), KMG Infra OÜ, WSP Finland Oy.
The total estimated value of the contracts is €726 million. However, with the option to procure strategic materials such as rails, sleepers, switches, and ballast, the overall value may reach up to €932 million.
The first alliance contract includes the superstructure works for the Ülemiste–Pärnu section also the sub and superstructure works for the Tootsi–Pärnu section. Its estimated value is €394 million. The leading partner in this alliance is GRK Suomi Oy.
Tiit Roben, CEO of GRK Eesti: “I am extremely grateful that Rail Baltic Estonia has chosen our construction consortium as an Alliance partner for Rail Baltic construction works from Ülemiste to Pärnu. This is by far the greatest construction project in Estonia. We have great local and international design and construction expertise in our international alliance team to solve the technical and environmental challenges of the project. We look forward to starting the project together with the client in an alliance and successfully construct the railway that provides sustainable transportation within Estonia and from Estonia to Europe. The new railway line will be changing the future of transportation in Estonia.”
The second contract covers the full design and construction of the Pärnu–Ikla section and is valued at €332 million. The leading partner in this alliance is Bouygues Travaux Publics.
Bertrand Burtschell, CEO of Bouygues Travaux Publics:
"We are proud to contribute to the largest infrastructure project ever undertaken in Estonia – a transformative initiative that will enhance connectivity and support more sustainable mobility for goods and people across the region. This is a landmark project for both today’s and tomorrow’s Europe, one that perfectly reflects our ambition to deliver high-impact infrastructure with long-term value. We have been particularly impressed by our client’s professionalism, innovative approach, and strong commitment. Their high standards inspire us to bring the best of our operational excellence to meet their expectations and make this project a shared success."
Following the contract signing, a development phase of approximately one year will begin. During this phase, the alliances will prepare detailed work plans, secure necessary resources, finalize technical solutions, and develop construction schedules. Active construction is planned to begin after this stage.
Estonian state will finance the contract, partly through greenhouse gas emission allowance trading scheme.
About Rail Baltica
Rail Baltica is one of Europe's largest high-speed infrastructure projects, aiming to establish a modern and sustainable rail link that connects the Baltic States of Estonia, Latvia, and Lithuania with the European rail network. It is also a part of the trans-European transport corridor.
Rail Baltica will be a fully electrified, double-track railway (partially one-track in the 1st development phase) with a standard gauge of 1435 mm and will be equipped with ERTMS (European Rail Traffic Management System) and designed to meet European standards. With a design speed of 249 km/h, Rail Baltica will significantly reduce travel times between the Baltic States and major European cities. It will serve as a modern infrastructure for passenger, freight, and military mobility, promoting accessibility and facilitating business, tourism, and cultural exchange. Additionally, the project will enhance the Baltic region's position as a vital transit hub, fostering stronger trade connections and promoting regional cooperation.
About RB Rail AS
RB Rail AS is a multinational joint venture between Estonia, Latvia and Lithuania established to lead and coordinate the implementation of the Rail Baltica Global Project, the first infrastructure development project of this scale in the Baltic region. Find out more about the Rail Baltica global project at www.railbaltica.org.
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