EU funds boost Rail Baltica project with €1.4 billion investment

Credit: Rail Baltica

RB Rail AS, the joint venture leading Rail Baltica, has announced two new funding agreements under the EU’s Connecting Europe Facility (CEF), securing €1.394 billion to accelerate the high-speed rail project connecting the Baltic states. This funding includes €1.163 billion from CEF and €231 million from Estonia, Latvia and Lithuania, marking one of the largest infrastructure awards granted by the EU this period.

“EU support has been instrumental for the three Baltic States in transforming Rail Baltica from an ambitious vision into a tangible reality, and this funding is not just an investment in infrastructure; it’s an investment in a more connected, resilient and unified Europe,” said Marko Kivila, Interim CEO at RB Rail AS. “The project is now preparing to apply for the final funding call for proposals within the current financial period (2021-2027) and will work closely with national partners across the Baltic region to secure a strong position in the upcoming EU budget negotiations.”

Funding by country

Estonia: The funding will support major construction along sections such as Soodevahe to Kangru and the Harjumaa area, including the Lagedi viaduct. Additional work is planned for the Saku to Harju/Rapla border and Alu to Kärpla sections. Estonia’s total allocation is approximately €440 million, consisting of €352 million from CEF and €88 million from national sources.

Latvia: Latvia’s main focus will be the construction of the Misa-to-Latvian-Lithuanian border route, with additional funding for a high-voltage connection in Iecava and a logistics base in Skulte. Property acquisition in the Skulte section and gas pipeline relocation along Vangaži-Misa will also be covered. Latvia’s funding totals €397 million, including €337.6 million from CEF and €59.5 million in national co-financing.

Lithuania: Funding will enable substructure work on the Ramygala to Joniškelis section, including high-voltage connections at Panevėžys and other locations. Track laying for the Kaunas–Panevėžys–state border section is also funded. Lithuania received approximately €529 million, with €450 million from CEF.

Additional project activities

Funds are also earmarked for Rail Baltica’s electrification design and railway system planning, with €28.8 million allocated for project management tasks like system engineering, risk management and assessments.

This funding brings Rail Baltica closer to enhancing connectivity and fostering economic growth across the Baltic region.