Estonia has signed two construction contracts worth €726m ($810.5m) for the Rail Baltica project, marking the largest infrastructure agreement in the country’s history.
The contracts, awarded to international consortia, will facilitate the development of two essential sections of the Estonian mainline.
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This milestone enables the project to progress towards establishing a high-speed rail line connecting Tallinn and Warsaw by 2030.
The total estimated value of the contracts has the potential to increase to €932m ($1.04m) through the procurement of strategic materials such as rails, sleepers, switches, and ballast.
The first contract, awarded to Alliance 1, includes GRK Eesti, GRK Suomi, AS Merko Ehitus Eesti, NGE CONTRACTING, Sweco Finland, Sweco Sverige, and TSO SAS. GRK Suomi is the leading partner in this alliance.
This contract, with an estimated value of €394m ($439.9m), covers the superstructure works for the Ülemiste–Pärnu section and the sub- and superstructure works for the Tootsi–Pärnu section.
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By GlobalDataThe second contract, awarded to Alliance 2, comprises Bouygues Travaux Publics, Budimex, INGEROP Conseil et Ingenierie (ICI), KMG Infra, and WSP Finland.
This agreement is valued at €332m ($370.6m) and encompasses the complete design and construction of the Parnu–Ikla section, with Bouygues Travaux Publics as the leading partner.
Estonia Infrastructure MinisterKuldar Leis said: “I am glad to see strong interest in the tender and that highly experienced international consortia made it to the final selection. This confirms that Rail Baltica is an attractive and strategically significant project even for the world’s leading infrastructure companies.”
Following the signing of the contracts, a development phase lasting approximately one year will commence.
During this period, the alliances will create detailed work plans, secure resources, finalise technical solutions, and establish construction schedules. Actual construction is anticipated to begin after this preparatory phase.
Funding for the contracts will be provided by the Estonian state, partially sourced from the greenhouse gas emission allowance trading scheme.
Rail Baltic Estonia management board CEO and Chairman said: “These contracts mark a new stage in the implementation of Rail Baltica – not just the beginning of a phase, but a turning point for the entire construction effort.”
The Rail Baltica project aims to create a modern and sustainable rail connection between the Baltic States of Estonia, Latvia, and Lithuania and the broader European rail network. It is also part of the trans-European transport corridor.
The project will feature a fully electrified, double-track railway, with a standard gauge, and European Rail Traffic Management System (ERTMS) to comply with European standards.
Designed for a maximum speed of 249km/h, Rail Baltica is expected to decrease travel times between the Baltic States and major European cities.
In October 2024, LTG Group, Lithuania’s national railway operator, and its partners established an official information point at Kaunas train station, providing the public with the latest updates on the Rail Baltica project to their Baltic neighbours.
