The declassification process of various reports associated with Rail Baltica project that were previously classified continues, according to the entry on the Legislative Portal.
This also means declassifying the report concerning the procurement procedure for the construction of Rail Baltica’s main track, as well as the funding provided to RB Rail in 2023.
Two reports related to the priority activities of the ninth call of the Connecting Europe Facility (CEF) and funding for the Rail Baltica project have also been declassified.
The report on the procurement procedure for the construction of the main track of the Rail Baltica project was adopted by the Latvian government in December last year. At the same time, the government at that time conceptually supported the signing of a contract for the construction work of the “Rail Baltica” base track in Latvia worth EUR 3.7 billion, initially ordering the construction works of the first stage worth EUR 165 million.
According to the report, the total contract amount of EUR 3 698 833 521 is the amount listed in the framework agreement and the stages of the works will be ordered according to the availability of funding – both within the framework of CEF and national co-financing. At the same time, it is noted that as a result of the procurement negotiation procedure, the initial total contract amount of the general partnership “E.R.B. Rail Baltica JV” was reduced by about 9.8% or 400 million euros.
It is also mentioned that the estimates of the basic track have increased significantly since 2021, therefore RB Rail is working on scenarios that will result in the total cost of the track being optimized. The amount also does not take into account possible cost savings in the optimization of technical solutions or, for example, possible inaccuracies in estimates of the amount of work on construction projects, which could reduce the amount.
In its turn, the report on the necessary funding of RB Rail in 2023 was reviewed by the government in September last year, supporting the necessary additional funding of EUR 398 503 for the implementation of the Rail Baltica project to cover indirect costs.
The report on Latvia’s priority activities in the ninth call of the CEF projects was noted in January 2023, but the report on the financing of the respective call for proposals for the “Rail Baltica” project was approved this January, including the co-financing of the state budget in the amount of EUR 79.6 million.
The Ministry of Transport (MoU) previously indicated that in October 2023 a financing agreement was signed with the European Climate, Infrastructure and Environment Executive Agency (CINEA) for additional support of EUR 298 million from the CEF “Rail Baltica” for the implementation of project activities in Latvia. Thus, it was necessary to ensure the co-financing of the state budget in the amount of EUR 79.6 million for foreign financial assistance granted in financing agreements.
LETA previously reported that the ministry declassified several reports related to Rail Baltica project in June 2024.
On the 9th of October, Saeima’s parliamentary inquiry committee voiced confusion after reviewing reports from 2022, which is when Tālis Linkaits was still Minister of Transport.
Andris Kulbergs, the head of the committee, asked during the meeting why in 2022 the report which stated the project’s price in Latvia was EUR 3.4 billion was replaced with a report in which the project’s costs are estimated at EUR 2.4 billion.
Linkaits responded to this by saying that EUR 2.4 billion was the amount stated in 2016 prices plus inflation percentage, whereas EUR 3.4 billion was the amount listed in 2021 prices. “Those prices are equal. There is no difference between the two,” stressed Linkaits.
It was also reported that according to the Rail Baltica project situation study report implemented by the Supreme Audit Institutions of the Baltic States, there is currently no clarity about the operation and management model of the Rail Baltica railway line.
According to the latest analysis of the costs and benefits of Rail Baltica, the total cost of the railway line in the Baltic States may reach EUR 23.8 billion, including the costs of the first stage of the project in the Baltic States could amount to EUR 15.3 billion, including EUR 6.4 billion in Latvia. In the previous cost-benefit analysis in 2017, it was estimated that the project will cost a total of EUR 5.8 billion.
The plan is to commence construction of Rail Baltica main track in 2024.