Estonia has pledged to complete the first phase of its Rail Baltic project by 2030, but concerns persist regarding the section of railway on the Latvian side.

Estonia is short €1.2 billion to complete the first phase of Rail Baltic, but Latvia's situation is worse. It has funding for only a 50-kilometer stretch, and that only in the direction of Lithuania.

On Monday, the Riigikogu's special committee on state budget control met with Latvian politicians and representatives of the European Court of Auditors. The session questioned whether the first phase will be completed as planned in four years' time, mainly due to delays in construction in Latvia.

"The management of this project is weak. More effective management must be ensured by agreement between the countries. Secondly, I am convinced that we should seek at least a bilateral agreement with Latvia so that we — and Estonian taxpayers — can be assured that Estonia's investments in the project over the years will symmetrically guarantee that Latvia also builds it out," said Urmas Reinsalu, chair of the Riigikogu's special committee and leader of Isamaa.

Leis said the biggest risk is that one country's government decides to abandon further construction. Latvia and Lithuania have confirmed that work will continue on schedule, and the countries are also preparing a joint procurement of trains.

"We have an agreement between the three countries in which all the prime ministers have repeatedly confirmed to the European Commission that 2030 is the target year, and therefore there is no need for any separate agreement between one, two or three countries," Leis said.

Lauri Ulm, technical director of Rail Baltic Estonia, said there are certain concerns and risks about how quickly it is technically possible to complete the project.

"If funding is sufficient, this is still the last moment to make those decisions and complete the railway in our direction as well," he said.

Latvia's procurements to date have been nearly one-third more expensive than Estonia's.

"Latvia's own knowledge and maturity regarding the project was much lower compared to Estonia when we went to procurement. When they launched the procurement, bidders factored in a higher price because the risks are significantly greater. On the other hand, Latvia's geotechnical conditions, where construction must take place, may likewise be significantly or somewhat worse than in Estonia," Ulm said.

The missing funding will be sought from the next European Union budget. In the new budget, a larger share of funds than before will be directed to defense, which could benefit Rail Baltic, Leis believes. He added that projects that have already received the green light from Europe will continue to be financed.

"Together, we are applying for funding for Rail Baltic, and we must show that construction is proceeding at the pace we have promised. In addition to the next period, there is also fresh news that it is possible to receive funding earlier, already in 2026 to 2027 from the leftovers of this round, meaning the funding situation is constantly changing, and there is no tragedy here," the minister said.

The total cost of Estonia's first phase is estimated to be €3.1 billion.

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