Rail Baltica has been awarded 928 million euros from the Connecting Europe Facility (CEF), a European funding instrument. Combined with national co-financing from Estonia, Latvia and Lithuania, the three Baltic States that the new high-speed line will connect, the project will have 2.7 billion euros of funding in the pocket.

The European Commission has selected 107 projects out of a total of 353 projects submitted in the second round, or call of the Connecting Europe Facility, the EU’s instrument for strategic investment in transport infrastructure. In total, 6 billion in EU grants from the CEF has been awarded in this round.

The substantial amount of financing recommended for the Rail Baltica global project will be added to the existing funding of over 1.6 billion euros secured for the implementation of Rail Baltica from CEF and national funding. Together with the recently approved additional financing, Rail Baltica has secured approximately 2.7 billion euros from CEF and national funding.

Rail Baltica will connect the three Baltic countries with eachother and on to Poland in European standard gauge (1435mm) high-speed line, where the countries’ national railways are in 1520mm gauge, built in the Soviet time. “The Rail Baltica project used to be a priority, now it is a geopolitical necessity”, says European Commissioner for Transport Adina Vălean. “We need a resilient transport connection for passengers and freight to and from the Baltic States. Overcoming different gauges is imperative to create an integrated European railway area that brings fast trains to the region and gives citizens new opportunities to travel between the Baltic States and the rest of Europe. The region needs this sustainable alternative alongside the buses and planes on which it today depends.”
An additional 285 million will be allocated to the Rail Baltica line in Poland, said the commissioner.

Other new cross-border rail connections along the European TEN-T core network have also been prioritised for funding. These include the Brenner Base tunnel, which links Italy and Austria, and the cross-border sections between Germany and Switzerland (Karlsruhe to Basel) and between Germany and the Netherlands (Emmerich–Oberhausen)

Next steps for Rail Baltica

“This year, our focus is on commencing mainline construction in all Baltic States, which includes the construction of mainline objects and related infrastructure facilities, and access roads, as well as implementing key services to enhance interoperability and the cross-border dimension of the project”, said Marko Kivila, interim Chairman of the Management Board and Chief Executive Officer at RB Rail AS. Rail Baltica has also initiated the project’s cost-benefit analysis and long-term business plan, which will be completed by autumn 2024. “This exercise is crucial for assessing the project’s economic viability, securing funding, and optimising project delivery”, said Kivila.

The planned financing agreement will support various key activities. These include the construction of railway substructures, civil engineering structures, service/access roads, and road crossings for multiple sections in Estonia, such as Loone to Alu, Harju/Rapla county border to Loone, Parila, Juula, Alu road crossings, and others. For the mainline in Estoni, it will be used for the construction of railway substructure, civil engineering structures, and service/access roads from Ülemiste to Soodevahe, construction supervision services, as well as land acquisition and related procedures.

In Latvia, the funding of this call is intended for the continuation of construction works in the main sections of the Rail Baltica project at both international stations. For example, viaducts will be constructed over Maskavas and Krasta Streets at the Rail Baltica Riga Central Hub, the access platforms to the hub, and the existing 1520mm gauge tracks will be relocated to the southern side of the newly constructed station.

The funding will also be used for the acquisition and design of real estate properties, the establishment of the construction base in Iecava, the construction and supervision works of the main track outside Riga. In Lithuania, mainline construction for the priority section from Kaunas to the Latvian border and land acquisition procedures will be covered from the CEF financing agreement.

Further reading:

• Rail Baltica high-speed line clears another environmental assessment
• Renfe, DB and Ineco to lend operating expertise to Rail Baltica
• Watchdog clear first Rail Baltica environmental impact assessment
• Rail Baltica marks start of construction effort for bridge over the Neris River
• Construction of Rail Baltica from Lithuania to Latvian border begins
• Rail Baltica’s longest railway bridge to be built by Italian company