“RB Rail AS” submits a new application for EU funding for Rail Baltica

On February 6, 2017, “RB Rail AS” submitted a new application to the 2016 CEF Transport Call for Proposals. So far, the three Baltic states and the joint venture “RB Rail AS” have received two grants designed under the European Union funding instrument Connecting Europe Facility (CEF) for the construction of the Rail Baltica railway, having signed Grant Agreements to a total value of 765 million euros. The CEF contribution will make up 85% of total eligible costs, giving financial support of up to a maximum of 633 million euros for the implementation of the project.

The main objectives for the additional funding in the application submitted on February 6, 2017 are: to continue with construction works in three countries; to finalize the design phase for all the elements of the Global project; to identify infrastructure components, inputs and resources that are more cost-efficient if procured in a consolidated fashion as a result of economies of scale; to carry out thorough supplier market assessments to determine optimum procurement and deployment strategies, as well as preparing the ground for taking a decision on the manager of the built infrastructure. The funding is intended to be used for actions such as assessments and studies, technical design, construction work, owner’s supervision, project implementation support measures and publicity measures.

The EU financial support already available was granted under the conditions laid down in the two Grant Agreements signed on November 18, 2016, and November 23, 2015. The agreements were signed by the Innovation and Networks Executive Agency (INEA) and “RB Rail AS” on behalf of the Ministry of Economics and Communication of Estonia, the Ministry of Transport of Latvia and the Ministry of Transport and Communication of Lithuania. The CEF contribution will make up 85% of total eligible costs giving financial support of up to a maximum of 633 million euros for the implementation of the project.

The financing under both Grant Agreements is allocated to cover the costs of Rail Baltica preparatory activities related to the start of construction works on the railway line as well as to begin Phase 1 construction works preparing for the main construction phase of the railway line. The actions that are covered by the grants include preparation of technical designs, assessments and studies such as environmental impact and archaeological studies in all three states, as well as land acquisition activities. Furthermore, the actions also include the start of the construction of railway embankments, grade level crossings and civil structures in all three Baltic countries. Additionally, the allocated money supports the execution of project implementation support measures and supervision, as well as communication and PR activities.

Currently available project financing between all of the involved parties (in millions of euros)