The central coordinator of the railway project "Rail Baltica" — the joint-stock company "RB Rail" — has signed another grant agreement under the Connecting Europe Facility (CEF) for 295.5 million euros in the form of co-financing from the European Union, the company's representative Signa Nigale informed the LETA agency.
Additionally, "RB Rail" will receive funding for the continuation of cross-border project management and coordination in accordance with the project management agreement, which is co-financed equally by all three Baltic countries.
The CEO and Chairman of the Board of "RB Rail" Marko Kivila noted that the ongoing support from the European Climate, Infrastructure and Environment Executive Agency (CINEA) allows for sustainable progress in the construction of the main line of "Rail Baltica".
"This funding enables us to purposefully advance key milestones of the project in all three Baltic countries," he emphasized.
At a meeting in Vilnius, agency representatives and project implementers discussed the progress of work and cross-border cooperation within the CEF. Participants also visited construction sites in Lithuania, including the bridge over the Neris River.
The next CINEA visit to assess progress is scheduled for November 2025 in Riga.
As previously reported, the Latvian government approved state co-financing of 25.55 million euros for the "Rail Baltica" project activities in Latvia on Tuesday, the Ministry of Transport informed the LETA agency.
Additionally, co-financing of 1.69 million euros is planned for the Latvian part of the joint venture "RB Rail".
The ministry explained that this co-financing is an important condition for receiving support from the European Commission and concluding an agreement with CINEA.
According to the ministry's data, within the CEF selection in 2024, a total of 170.35 million euros was allocated for the construction of "Rail Baltica" in Latvia and related activities, of which 155.47 million euros is intended directly for the construction of the main line.
Of the total amount, 144.79 million euros is provided by CEF, and the required co-financing from the Latvian state budget of 15% amounts to 25.55 million euros.
Funding is provided to Latvia from the cohesion fund, for which only 15 EU member states eligible for it could submit applications. According to the ministry, this application received the highest rating in history among all Latvian applications for CEF funding and will allow the continuation of the construction of the main line from the Latvia-Lithuania border to Salaspils.
This funding will ensure the construction of a railway embankment on four southern sections of the main line with a total length of 13.3 km. The work includes the construction of access and service roads, drainage systems, engineering communications, and other necessary works. Supervision and control over construction works will also be ensured.
Funding will also be directed towards the development of the technical project for the electrification of the Upeslejas – Latvia-Lithuania border section (first phase), as well as for activities supporting project implementation. The funds will cover FIDIC engineer services for supervising the development of the electrification project and compliance with global project requirements, as well as expenses for the construction project expertise.
Additionally, funding will cover the activities of the joint venture "RB Rail" in Latvia, as well as the Latvian part of horizontal activities of the global project, co-financed equally by the three Baltic countries.
The allocated funding must be used by the end of 2029.
In addition to co-financing from the state budget, the government allocated funds for the compensation of value-added tax (VAT) amounting to 34.78 million euros for Latvian activities and 1.87 million euros for the activities of "RB Rail".
The ministry emphasizes that so far, the "Rail Baltica" project has received up to 85% co-financing from CEF, while the average for other projects in Europe is 30–50%.
It was previously reported that according to information from "RB Rail", the cost of the first phase of the "Rail Baltica" project in the Baltic States could reach 14.3 billion euros, of which 5.5 billion euros would be allocated to Latvia. However, savings of up to 500 million euros are possible due to optimization of technical solutions, as well as other potential savings.
The total cost of the project, according to the cost-benefit analysis, could reach 23.8 billion euros. In the previous analysis in 2017, it was estimated that the project would cost a total of 5.8 billion euros.
The "Rail Baltica" project involves the construction of a European standard gauge railway line from Tallinn to the Lithuania-Poland border to connect the Baltic States with the rest of Europe. A new railway line of 870 kilometers with a European gauge (1435 mm) and a maximum train speed of up to 240 km/h is planned to be built in the Baltic States.
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