Rail Baltica project signs 214,3 million EUR Grant Agreements with INEA

Innovation and Networks Executive Agency (INEA) and  joint venture of the Baltic States 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 signed two additional cross-border Grant Agreements on the Connecting Europe Facility (CEF) funding for Rail Baltica. The total budget of these two Agreements is 214,3 million euros, of which the CEF contribution will be of a maximum amount of 182,2 million, constituting 85% of the total eligible costs. Remaining 15% will be financed by the governments of the Baltic States.

The decision to allocate the funding was taken on 16 July 2020 by the CEF Committee, in the framework of the 2019 CEF Transport Call, which is managed by INEA.

 “This additional EU funding will enable the project to further advance construction works in the key passenger terminals in Estonia and Latvia and ensure the construction of further main line section from Kaunas towards the Lithuanian – Latvian state border. Furthermore, this funding will allow to progress with the development of the key railway subsystems, planning and design of regional stations and infrastructure maintenance facilities for all three Baltic States,” says Agnis Driksna, Chairperson of the Management Board of Rail Baltica Joint Venture RB Rail AS.

According to the Grant Agreement concerning works, 128,2 million euros have been allocated to construction activities such as:

  • Rīga Central Station railway section (phase II),
  • Rīga Airport railway section (phase II),
  • Ülemiste Passenger Terminal (phase II),
  • Access to Muuga freight terminal (phase I),
  • Part of track construction works in Lithuania on section from Kaunas to the Lithuanian/Latvian state border.

Additionally, in the second Grant Agreement, some 86,1 million euros will be invested for technical design and planning, including the preparation of energy and railway control and command subsystems. Furthermore, EU financing will be used to plan and design for local facilities and regional stations and stops on the route of Rail Baltica to ensure that the new line creates additional benefits by facilitating regional rail transport services between the regions of the Baltic States. Lastly it covers various stages of land acquisition procedure for each Baltic State, which together with designs, is unavoidable prerequisite to start future construction works.

Together with the previously signed grant agreements, Rail Baltica has thereby already secured around EUR 1.12 billion from the EU and national funds.