Rail Baltica Secures EUR 1.2 Billion in Additional Funding from CEF

On July 17, 2024, the Rail Baltica joint venture RB Rail AS, representing the Ministries of Climate of Estonia, Transport of Latvia, and Transport and Communications of Lithuania, announced the awarding of an additional EUR 1.2 billion from the latest Connecting Europe Facility (CEF) call.

The funding combined with national co-financing from the three Baltic States, will total EUR 1.5 billion, enabling the progression of construction activities and the development of the next stages of Rail Baltica. The allocation includes approximately EUR 370 million for Estonia, EUR 346 million for Latvia, and EUR 458 million for Lithuania. Magda Kopczynska, Director-General for Mobility and Transport at the European Commission, said, "Estonia, Latvia, and Lithuania must be better connected to the rest of the EU; the war in Ukraine has demonstrated how important that is. I count on the project partners to make the most of the support and get this connection in place as swiftly as possible."

The financing agreement, scheduled for signing between the European Climate, Infrastructure, and Environment Executive Agency (CINEA) and Rail Baltica in Q4 2024, will support several key activities in each country. In Estonia, funding will go towards mainline construction activities, including substructure works for various sections and the installation of protective elements. Latvia will focus on the Misa – LV/LT border section, with significant funds allocated for the relocation of the natural gas pipeline and construction assessments. Lithuania will receive co-financing for mainline construction, focusing on substructure works for several key sections and the development of High-Voltage Connection Points.

Marko Kivila, CEO and Chairman of the Management Board at RB Rail AS commented, "This support is paramount to achieving the global project timelines outlined in the newly adopted Rail Baltica Delivery Programme 2030, which will promote sustainable transportation, enhance regional connectivity, and strengthen military mobility vital to our common defense."

By the end of 2024, it is expected that around 15% of the Rail Baltica mainline will be under construction. Estonia is set to have 102 km of the mainline under construction contracts, Latvia will have agreements for over 200 km, and Lithuania will extend its construction to around 70 km. The project's economic benefits are to surpass the costs, totaling EUR 48 billion for the Baltic States, with the implementation cost of the first project phase estimated at EUR 15.3 billion. The Commission has selected 134 transport projects to receive over EUR 7 billion in EU grants from the CEF, marking the largest call under the current CEF Transport programme. This funding will modernize the EU network of railways, inland waterways, and maritime routes, with rail projects receiving 80% of the EUR 7 billion.

Source: Rail Baltica