Rail Baltica to require €500–600 million annually in investments
Under the draft state budget law, €500–600 million a year will be invested in Rail Baltica through 2030, mostly from the EU's Connecting Europe Facility.
According to Anvar Salomets, CEO of Rail Baltic Estonia, the project's investment plan was drawn up to ensure the railway is ready for use within five years.
"The coming years all require significant investment — on average, around €500–600 million annually. Since the state budget law and the state budget strategy cover a four-year horizon, our plan currently extends to 2029, though substantial construction work will also continue into 2030," Salomets said.
He explained that Rail Baltic increased its share capital due to the expansion of its operational scope.
"As far as I know, the share capital is limited to €4 million per year and there's no need for additional increases. Just to clarify: share capital is the portion of the budget used to cover overhead and any expenses deemed eligible for foreign funding. It's a very small part of the overall budget," Salomets said.
Under the draft state budget currently under discussion in the Riigikogu, taxpayers will contribute €5 million to Rail Baltica next year, with an additional several tens of millions of euros coming from EU co-financing.
Salomets stated that next year's total investment through Rail Baltic Estonia will amount to €420 million, the bulk of which — around €235 million — will come from the EU's Connecting Europe Facility.
"Roughly €22 million will come from the Recovery and Resilience Facility and €5 million is Estonia's national co-financing — essentially the taxpayer's share. There's also co-financing tied to the Connecting Europe Facility, amounting to another several tens of millions of euros," Salomets added.
Construction of the key sections of Rail Baltica's main line will begin next year. However, all seven eco-ducts and 16 out of 26 planned intersections have already been completed, along with a new waiting platform at Ülemiste.
Main line construction will proceed in multiple phases from 2026 to 2030.
Rail Baltic is scheduled for completion and commissioning in the fourth quarter of 2030, when passenger and freight services are expected to begin.
In May, it emerged that Latvia may not complete its portion of the Rail Baltica route by 2030 and considers 2035 a more realistic target. Estonia, however, remains committed to finishing its segment on schedule.
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Editor: Marcus Turovski, Mari Peegel
