Latvia to ask Europe for half a billion euros for Rail Baltica project

A funding request of EUR 494.3 million will be submitted to the Connecting Europe Facility for Rail Baltica project, as decided by Latvian Cabinet of Ministers on Tuesday, 11 January.

Ministry of Transport reports the government presented a report on the progress with Rail Baltica in Latvia. The decision was made to submit the funding request. The government also approved the funding request of almost EUR 11.7 million for the Military Mobility Grant, which is also intended to assist with Rail Baltica project.

The financing amount requested for activities in Latvia, as detailed in CEF8 appeal, is EUR 494.3 million. EUR 342.5 million is financing from CEF and EUR 151.8 million is financing from the Latvian state budget. Latvia’s financing request will be reviewed by CEF8 through a competitive process. Rail Baltica project competes with other EU member states’ cross-border projects, has high added value and promotes smart, sustainable, inclusive and safe mobility for residents.

So far Latvia has taken part in five CEF appeals. Having signed six financing contracts, Latvia has attracted EU financing of EUR 317.3 million, which comes to EUR 382.4 million together with state financing.

Minister of Transport Tālis Linkaits says Rail Baltica is an important project not only for Latvia and Baltic States but the entire European Union as a whole. «CEF is the main source of funding for the project. There are additional funding opportunities from of other financial instruments, such as military mobility,» says Linkaits, stressing that other models are considered as well, including through private and public partnership projects.

The next financing request for Rail Baltica project will be submitted on behalf of Latvia and other Baltic States by JSC RB Rail. Submission of the request is planned for 19 January 2022. European Commission’s decision on CEF8 appeal to further finance activities of the project is expected in the second half of 2022.

Rail Baltica project provides for the creation of a European-standard width railway from Tallinn all the way to the Lithuanian and Polish border in order to connect Baltic States with other European countries. It is planned to build a new 870 km long European railway (1 435 mm) in Baltic States, allowing for a maximum train speed of 240 km/h.

It is planned for Rail Baltica costs to reach EUR 5.8 billion. This includes the railway branch planned to be built to connect Kaunas and Vilnius. Part of the costs is covered by the European Union. Rail Baltica is planned to be finished and open for railway traffic in 2026.

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