The Spanish consortium has filed a lawsuit in international arbitration, demanding compensation from Latvia of more than 14 million euros in connection with the termination of the contract for the design of the main section of the Rail Baltica railway line through Riga.
As reported by representatives of the Baltic joint venture RB Rail, the contract for the design and author supervision of the Riga section of the Rail Baltica highway was terminated in October 2023.
In February 2026, RB Rail and the Latvian Ministry of Transport received a notification about the initiation of arbitration proceedings. The consortium is demanding compensation of over 14 million euros from the defendants.
The best defense is an attack. The Latvian Ministry of Transport has filed a counterclaim against the Spanish consortium for a contractual penalty of 3.37 million euros.
As explained by RB Rail, on September 26, 2023, the company received a unilateral notice of termination of the contract from the consortium.
RB Rail claims that due to prolonged and significant delays on the part of the contractor, systematic failure to rectify deficiencies in the design documentation, and non-fulfillment of other contractual obligations within the stipulated timeframes, the amount of the accrued penalty reached the maximum allowable level, and the deadlines for delays exceeded the limits provided for in the contract.
As a result, both parties allegedly acquired the right to unilaterally withdraw from the contract.
Due to the confidential nature of the arbitration process, more detailed information about the content of the dispute is not disclosed.
According to the terms of the contract, the dispute is being considered by the International Arbitration Court at the International Chamber of Commerce. Stockholm has been designated as the venue for the proceedings.
What It's About
A new European standard railway line with a gauge of 1435 mm is planned to be built in the region by 2030, with a total length of about 870 kilometers.
The cost of the first phase of the Rail Baltica project in the Baltic States may reach 14.3 billion euros, of which Latvia accounts for about 5.5 billion euros. With indexing, this amount could rise to 6 billion euros.
According to a cost-benefit analysis, the total cost of the project in the Baltic States could reach 23.8 billion euros. In comparison, a previous study in 2017 estimated the total cost of the project at 5.8 billion euros.
However, many experts express doubts that the construction will be completed within the allotted time - by 2030.
