Rail Baltica represents an impressive effort that combines improved connectivity, sustainability, and economic development. It marks an important milestone towards a more integrated future for the Baltic States and Europe as a whole.
The Rail Baltica joint venture RB Rail AS, acting on behalf of the project’s beneficiaries – the Ministry of Economic Affairs and Communications of Estonia, the Ministry of Transport of Latvia, and the Ministry of Transport and Communications of Lithuania on 22 June 2023 announced that it has been awarded 928 million euros in the second call within the second financial period of the Multiannual Financial Framework (MFF) 2021-2027 from the Connecting Europe Facility. This substantial funding, combined with national co-financing from the three Baltic States, will exceed 1.1 billion euros, enabling necessary activities for further high-speed infrastructure development to connect the Baltic region with the rest of Europe.
European Commissioner for Transport, Adina emphasizes the significance of this transformative initiative: “The Rail Baltica project used to be a priority, now it is a geopolitical necessity. Overcoming different gauges is imperative to create an integrated European railway area that brings fast trains to the region and gives citizens new opportunities to travel between the Baltic States and the rest of Europe.”
According to the evaluation results for the project’s eligibility to CEF funding by the European Commission, Rail Baltica has the following positive aspects:
- The project holds significant value for the European Union as it fosters cross-border cooperation, enhancing connectivity within the EU transport system and improving access to the TEN-T network.
- Rail Baltica will deliver numerous socio-economic advantages, including time and cost savings through more efficient train operations. Moreover, it will contribute to reducing accident costs, greenhouse gas emissions, and pollution. The planning process has thoughtfully considered climate resilience, ensuring compliance with EU technical standards.
- Rail Baltica has reached an advanced stage of maturity, with all necessary preparatory studies, feasibility assessments, and cost-benefit analyses completed. Environmental impact assessments for the project’s work packages are also in place. The project demonstrates a high level of technical maturity and readiness, remaining on track to be completed as scheduled by the end of 2027. Construction works are set to commence in 2023, following the acquisition of required permits.
- The project’s development has been well-thought-out, with activities aligning with objectives and implementation plans that are realistic and technically consistent. The project’s timeline is reasonable and achievable, with the arrangements for financial management and financial monitoring processes, risk management, quality management and control procedures in place.
- By reducing emissions from transportation, particularly through a shift to rail, Rail Baltica aligns with the goals of the Green Deal.
- The project has a significant catalytic effect. The funding from the Connecting Europe Facility has successfully mobilized national resources and accelerated the project’s progress. EU support encourages investments in rail infrastructure by national public sectors. Furthermore, CEF funding is expected to attract additional public and private investments once the entire project is completed.
The substantial amount of financing recommended for the Rail Baltica global project will be added to the existing funding of over 1.6 billion euros secured for the implementation of Rail Baltica from CEF and national funding. Together with the recently approved additional financing, Rail Baltica has secured approximately 2.7 billion euros from CEF and national funding. The estimated Rail Baltica CAPEX in 2017 was 5.8 billion euros.