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December 10, 2020

INEA and RB Rail sign two cross border grant agreements

Innovation and Networks Executive Agency (INEA) and the Baltic States RB Rail joint venture (JV) have signed two additional cross-border grant agreements on the Connecting Europe Facility (CEF) funding for Rail Baltic.

Innovation and Networks Executive Agency (INEA) and the RB Rail joint venture (JV) have signed two additional cross-border grant agreements on the Connecting Europe Facility (CEF) funding for Rail Baltic.

The JV signed the agreements on behalf of the Ministry of Economics and Communication of Estonia, the Ministry of Transport of Latvia, and the Ministry of Transport and Communication of Lithuania.

The total budget of these two agreements is nearly $259m.

CEF will contribute the maximum amount of $220m, which is 85% of the total eligible costs while the governments of the Baltic States will finance the remaining 15%.

On 16 July, the CEF Committee decided to allocate the funding under the framework of the 2019 CEF Transport Call, which is managed by INEA.

RB Rail management board chairperson Agnis Driksna said: “This additional EU funding will enable the project to further advance construction works in the key passenger terminals in Estonia and Latvia and ensure the construction of further main line section from Kaunas towards the Lithuanian – Latvian state border. Furthermore, this funding will allow us to progress with the development of the key railway subsystems, planning and design of regional stations and infrastructure maintenance facilities for all three Baltic states.”

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According to the grant agreement concerning works, approximately $155m have been allocated to construction activities such as the Rīga Central Station railway section (phase II), Rīga Airport railway section (phase II), Ülemiste Passenger Terminal (phase II), access to Muuga freight terminal (phase I) and more.

Furthermore, around $104m will be invested under the second grant agreement for technical design and planning, as well as the preparation of energy and railway control and command subsystems.

EU financing will also be used to plan and design local facilities, regional stations and stops on the route of Rail Baltica.

The agreement covers several stages of land acquisition procedure for each Baltic state, which is a pre-requisite for future construction works.

In addition to the earlier signed grant agreements, Rail Baltica secured around $1.4bn from the EU and national funds.

RB Rail AS is a joint Estonian, Latvian and Lithuanian company, which was established to coordinate the implementation of the Rail Baltic project.

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