The Riigikogu's cross-party Haapsalu railway support group had petitioned the government on the issue, urging it to focus on the new EU funding period to secure financing for the construction of the section.

Haapsalu had in the past been served by a rail link, reflecting its heritage as a resort town, and its late Tsarist-era train station is a noted landmark. A functioning passenger rail link to the town ended in the mid-1990s, with freight rail ceasing the following decade. Plans have in more recent years been on the table to extend the western branch of the national rail system from Turba, itself a recent extension from Riisipere, all the way to Haapsalu.

Leis said he sees no way of completing this project using domestic funds alone, however.

Leis noted during a parliamentary question time that major infrastructure projects are already underway, and funding for the extension to Haapsalu and beyond to Rohuküla, just west of Haapsalu, has not been included in the state budget strategy in recent years,

This is despite all the sections from Turba to Rohuküla having been designed.

"On the other hand, now is exactly the right time to set plans for the next round of EU funding, and we can include completion of the Rohuküla section there. The estimated cost listed is close to €200 million. We will not do this with Estonia's own funds. So we need to seek support from Europe, and right now we can include it in the European application," Leis said.

He also noted that the railway section uses the old "Russian" gauge (1,520 mm, compared with the European 1,435 mm gauge to be used in the Rail Baltica project).

"In general, we have taken the direction that for new sections we will move to the European gauge, and we will also reconstruct existing sections with the old gauge, but not build new ones. This currently works against the Rohuküla section, but yes, we can still apply for European funding," Leis said.

The infrastructure minister also noted that the Haapsalu railway is a regional project and so cannot be compared in importance to the international Rail Baltica high-speed railway project.

MP Jaanus Karilaid (Center) pointed out that the Turba–Riisipere section had already been completed, with funding from the state budget. He asked the infrastructure minister whether, if given the choice, he would prefer to complete the section by borrowing or by using European funds. "Looking at the state budget situation, I do not see an option for doing this with Estonian funds," Leis said.

"If now is the right time to apply for funding from the next EU round, then it certainly makes sense to put all efforts into bringing European money into infrastructure projects. We must also consider that, according to the European Commission's proposal for the next funding period — which has not yet been approved by parliament — the infrastructure funding is twice as large as in the previous period," Leis said.

"So in that sense, the likelihood of receiving funding from Europe is higher. If it does not succeed, then the next question is whether to proceed with Estonian funds or not. But to return to my earlier point that this is purely a regional project. That means it would have to come at the expense of other regional development, as it cannot come at the expense of healthcare or education," he added.

The top speed of the stretch from Turba to Haapsalu would be 160 km/h, compared with 120 km/h between Haapsalu and Rohuküla.

Rohuküla is a small port and is used by ferries traveling to and from the island of Hiiumaa, so a rail extension would enable passengers to travel all the way from Tallinn by train.

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