Rail Baltica submits new funding application for the Connecting Europe Facility call

The Rail Baltica global project coordinator has submitted a funding application for the latest Connecting Europe Facility (CEF) call in this budget period, outlining plans for further infrastructure developments across Estonia, Latvia, and Lithuania, with a total value exceeding €325 million.

“The competition for this Connecting Europe Facility funding call is incredibly strong. However, we remain optimistic about a positive outcome, as this financing is critical for accelerating Rail Baltica’s construction progress across Estonia, Latvia, and Lithuania. Securing this funding will help us take significant steps toward completing this vital infrastructure, which connects the Baltics to the European rail network and strengthens regional connectivity,” said Marko Kivila, interim CEO and Chairman of the Management Board at RB Rail AS.

Construction activities submitted for the next funding round

In Estonia, the application includes the construction of a 10.1 km double-track embankment from Kärpla to Selja, involving construction work for the railway substructure and civil engineering structures.

In Latvia, the focus is on the next phase of construction on the southern section of the Rail Baltica mainline (from the Lithuanian border to Salaspils). This includes the construction of 14.2 km of railway embankments. Additionally, the application includes the first phase of technical design for the Rail Baltica electrification project in the section from the Latvian-Lithuanian border to Upeslejas, as well as support measures for project implementation.

In Lithuania, the scope focuses on several strategic elements, including the three structures in the Kaunas Urban Node Railway mainline section, full-scope ENE technical design from the Latvian border to the Polish border, design of regional stations, and executive design services. The plan also includes land acquisition for 30% of the section between the Polish border and the Kaunas Urban Node.

All Baltic countries saw growth in construction last year

In 2024, Rail Baltica construction activities progressed across all three Baltic states. In Estonia, construction contracts cover 73.87 kilometers of railway embankment, with an additional 32.59 kilometers planned for tender in the upcoming weeks. In Latvia, a framework agreement for mainline civil works has been signed, covering 228 kilometers, with initial construction set to begin on a 40-kilometer section near the Lithuanian border. In Lithuania, construction is ongoing for 46.3 kilometers of mainline embankment and engineering structures, a tender has been launched for additional 12.1-kilometer section, with additional tenders planned to be launched in 2025, starting works in total of 114 km this year.

Currently, approximately 160 kilometers of the mainline and associated infrastructure are under construction in all three countries. With ongoing procurement processes for key railway subsystems and the current pace of work, Rail Baltica expects to have 43% of the mainline ready for construction by the end of 2025.

Alongside national activities, Rail Baltica is also continuing the cross-border activities to be implemented by the joint venture RB Rail AS and co-financed by all three Baltic states. RB Rail AS will continue to global project coordination through system engineering, comprehensive management activities, including action management, global project coordination, planning and verification, and ENE technical design support measures.

The project has already secured over €4 billion in funding, with significant contributions from the EU and member states. To address rising costs driven by inflation, Rail Baltica is exploring new funding mechanisms, including concession-based procurements and leveraging EU military mobility funds.

In September 2024, the European Commission announced the final call for funding under the Connecting Europe Facility (CEF Transport) for the 2021–2027 period. Results are expected by July 2025, with funding agreements finalized in the fall.