The government on Tuesday approved amendments prepared by the Ministry of Transport (MoT) to the Rail Baltica Project Implementation Law, which aim to strengthen project governance by defining the responsibilities of other ministries involved in the implementation of the project.
According to the ministry, based on findings from national and European Union (EU) audits, Latvia has so far lacked an effective management framework for Rail Baltica, which has negatively affected the project’s timely implementation within available funding and deadlines.
The need to expand the number of institutions involved in the project was also discussed in the Parliamentary Investigation Commission, whose final report highlighted the insufficient involvement of other ministries. The MoT stresses that each ministry is expected to provide support within its area of competence.
Under the proposed amendments, the Ministry of Finance (MoF) will assist the MoT in securing state budget funding, EU policy instruments, other international financial assistance, and additional financing sources. The Ministry of Foreign Affairs (MFA) will support the negotiation and conclusion of interstate and intergovernmental agreements.
The Ministry of Justice (MoJ) will provide advisory support regarding the registration
of real estate needed for Rail Baltica implementation. The Ministry of Climate and Energy (MCE) will assist with electricity supply infrastructure, as well as with planning and implementing climate and energy projects financed by international and other instruments related to the project.
The Ministry of Defence (MoD) will ensure coordination on national defence and military mobility, the Ministry of Environmental Protection and Regional Development (VARAM) will address environmental and regional development issues, and the Ministry of Economics (MoE) will provide support on construction matters related to Rail Baltica.
The ministry notes that the Rail Baltica Implementation Law came into force in November 2022, and that updates are needed regarding project scope and governance. The TEN-T Regulation and the European Commission’s implementing decision foresee that the first phase of Rail Baltica must be completed by 31 December 2030. However, the Cabinet’s earlier decision defining this phase no longer includes the connection of the main line to Riga.
The amendments therefore clarify that Phase 1 will ensure a functional cross-border section
of the European-gauge railway connecting Latvia with Estonia and Lithuania, while Phase 2 will cover the remaining infrastructure in Latvia.
The government also confirms that project implementation will proceed according to available financing. The draft law specifies that Rail Baltica infrastructure must have dual-use capability — serving both civilian transport and military mobility.
Considering the scope of activities, including assets transferred to municipalities, the law will allow the project to be financed not only through EU funds and the state budget, but also through other sources, such as loans from financial institutions, municipal budgets, private financing, donations, and gifts.
The ministry explains that such additional financing sources may be used only if they do not negatively affect the general government budget balance, or if any negative effect is offset, in compliance with the Fiscal Discipline Law and EU fiscal rules.
The amendments also establish, for the first time, conditions for managing Rail Baltica infrastructure.
The infrastructure and related structures built during the project will belong to the Latvian state, represented by the Ministry of Transport.
In cases where structures or utilities are built using Rail Baltica funds on privately owned land, the ownership rights will be registered in the name of the landowner, regardless of who initiated construction. If the project requires reconstruction, relocation, or demolition of private structures, investments may be made to restore affected properties to an equivalent functional state.
The ministry also reiterates that Rail Baltica public-use railway infrastructure is a national interest object. Information on territories required for the functioning of the infrastructure is published on the Territorial Development Planning Information System (TAPIS) website at www.tapis.gov.lv.
During the public consultation process, residents may currently express their views on construction plans, allowing municipalities to impose additional conditions in building permits. However, the ministry argues that such conditions can delay and complicate construction. Therefore, the amendments stipulate that no public consultation will be held for the construction of Rail Baltica’s public-use railway and related infrastructure.
The changes also allow environmental procedures related to the construction of Rail Baltica infrastructure to be conducted simultaneously with design work, but
no later than the approval of design compliance within an ongoing construction process.
As previously reported, the cost of Phase One of Rail Baltica in the Baltics could reach €14.3 billion, of which €5.5 billion would be in Latvia. However, potential savings of up to €500 million are possible through technical optimization and other efficiencies.
According to the latest cost–benefit analysis, total project costs across the Baltics could reach €23.8 billion, compared to an earlier 2017 estimate of €5.8 billion.
The Rail Baltica project envisions a European standard-gauge railway line from Tallinn to the Lithuania–Poland border, connecting the Baltic states to the broader European rail network. The project foresees a new 870-kilometre line with a track gauge of 1,435 mm and a maximum train speed of 240 km/h.
Read also: KNAB explains why the Rail Baltica case is stalling – politicians under scrutiny