As officials fail to reach an agreement, Rail Baltica’s implementation in Latvia remains uncertain

On Tuesday, the 26th of November, Latvian government will start reviewing the scenario for the implementation of the first stage of Rail Baltica project. Discussions regarding necessary clarifications will continue accordingly.

As journalists were told by New Unity Saeima faction leader Edmunds Jurēvics, the agreement reached so far provides for a review of the report in the Cabinet of Ministers.

“We still have to agree on certain details, but the general goal for the construction of this main railway track is clear to the coalition,” said Jurēvics, adding that work on the report continues.

Minister of Agriculture Armands Krauze added that a conceptual discussion is needed to understand how best to clarify the report.

Answering the question if the report could be reviewed on Tuesday, Jurēvics added “there are no guarantees about anything in our lives”.

Andris Šuvajevs, chairman of Progressives Saeima faction, said the most important aspect is agreeing on which ministry and to what extent will be involved in the project. According to him, the objections from multiple ministries have already been resolved. This is why it is necessary to move forward on the governmental level.

It has already been reported that the Ministry of Transport has prepared a scenario for the implementation of the first round of “Rail Baltica” in Latvia, which provides for the construction of single-lane track from the Lithuanian border to Estonia, as well as the creation of a European gauge rail connection with one of the two Riga international stations. Before the completion of the first stage of the project, it is planned to connect the two Riga international stations with the existing railway infrastructure.

However, the Ministry of Defence, Ministry of Foreign Affairs, Ministry of Culture, Ministry of Smart Administration and Regional Development have all submitted their own objections to this scenario, effectively rejecting the report.

The total cost of implementing the first cross-border connection from the Estonian border to the Lithuanian border, using only the freight bypass through Salaspils, is 4.5 billion euros. On the other hand, the total cost of the infrastructure of the two international passenger stations and the associated tracks amounts to EUR 875 million, whereas the construction of infrastructure maintenance points in Iecava and Skulte, a traffic control centre and a side road Salaspils freight terminal, as well as four regional stations, requires EUR 133 million.

Estimates from RB Rail indicate that the implementation of Upeslejas-Riga Central Station project will require financing EUR 629 million, whereas Misa-Riga airport section of the project will likely cost EUR 924 million.

The total cost of the entire project in Baltics, based on the cost/benefit analysis, may reach EUR 23.8 billion. The cost/benefit analysis from 2017 estimated the project would cost EUR 5.8 billion.