Rail Baltic Estonia signed an alliance procurement consultancy contract

Rail Baltic Estonia has signed a significant agreement to develop an alliance procurement strategy, which will serve as the basis for the procurement of large-scale Rail Baltica railway construction works. The contract was signed with joint bidders BrainTeam OÜ and Vison Oy.

Rail Baltica is one of Europe’s largest high-speed infrastructure projects, aiming to establish a modern and sustainable rail link that connects the Baltic States of Estonia, Latvia, and Lithuania with the European rail network. It is also a part of the trans-European transport corridor.

Rail Baltica will be a fully electrified, double-track railway with a standard gauge of 1435 mm and will be equipped with ERTMS (European Rail Traffic Management System) and designed to meet European standards. With a design speed of 249 km/h, Rail Baltica will significantly reduce travel times between the Baltic States and major European cities. It will serve as a modern infrastructure for passenger, freight, and military mobility, promoting accessibility and facilitating business, tourism, and cultural exchange. Additionally, the project will enhance the Baltic region’s position as a vital transit hub, fostering stronger trade connections and promoting regional cooperation.

“The Rail Baltica railway must be completed by 2030, and the tight schedule also means that we are constantly seeking opportunities to enhance our activities. Transitioning to a collaborative or alliance procurement model allows us to potentially announce extensive procurement packages, worth hundreds of millions of euros, by the end of this year, predominantly for the construction of railway superstructures and partially for the construction of railway substructures,” explained Anvar Salomets, CEO of Rail Baltic Estonia.

“We are pleased and honored to contribute to the success of one of the most important infrastructure projects. The flexible, collaborative, and innovation-friendly Alliance contract model has proven itself in challenging projects in our neighboring countries over the past 12 years. Based on our previous experience, the alliance model has not only contributed to better quality and financial results in projects but has also transformed the construction culture, focusing on cooperation, trust, transparency, and people who actually create value for the project. The goal of the Alliance is to succeed together. We believe that in collaboration with Rail Baltic Estonia and other partners, we can find the best opportunities and solutions to contribute to the success of the entire Rail Baltica project,” said Sulev Senkel, partner at BrainTeam OÜ.

The cost of the signed contract is approximately 1 million euros, and it lasts from signing until the completion of the construction works. The subject of the contract is the development of an Alliance procurement strategy and contract model for the implementation of the following sections: Ülemiste – Tootsi – main line superstructure; Tootsi-Pärnu main line sub and superstructure; Pärnu-Latvian border main line sub and superstructure on the territory of the Republic of Estonia. As a result of the contract’s fulfillment, the consultant will prepare procurement documents (including procurement contracts) and advise the parties during the execution of construction contracts. The consultant will advise the client on the preparation and conduct of procurement procedures, as well as on the implementation of the Alliance contract model during the execution of the works until their acceptance.

The announcement of Alliance procurements is planned for the end of 2024. Alliance procurements are not common in Estonia; their duration is longer than what has been practiced so far and focuses on the team’s performance, values, and the goal of achieving the best solution for the project. Rail Baltic Estonia plans to conclude Alliance contracts during the first half of 2025.

The contract is financed up to 85% by the European Union’s Connecting Europe Facility.