Rail Baltica has signed a contract worth €1.77bn ($2.07bn) for the design and construction of its electrification subsystem.
The contract was awarded to the joint venture COBELEC Rail Baltica, which comprises Spanish companies Cobra Instalaciones y Servicios and Elecnor Servicios y Proyectos.
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It encompasses the complete deployment of the Rail Baltica Energy (ENE) subsystem, with the first phase budgeted at €949m and set for completion by 2030.
The project aims to electrify 870km of railway and 2,403km of tracks across Estonia, Latvia, and Lithuania and is claimed to be the largest railway electrification project in Europe.
It will also implement Static Frequency Converter (SFC) technology combined with a 2x25kV system in a 50Hz framework, supported by ten traction substations, to enhance reliability, efficiency, and environmental performance.
Lithuania Transport and Communications Acting Minister Eugenijus Sabutis said: “Rail Baltica is more than just infrastructure – it is an economic and security link to the West.
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By GlobalData“This contract is particularly important for our integration into the European railway network, enabling smooth passenger and freight transport while strengthening the resilience of the Baltic region.”
The contract award followed a procurement process initiated in May 2022, during which four international consortia submitted proposals.
Three were shortlisted in 2023, with COBELEC Rail Baltica selected for its technical solution, cost efficiency, and sustainability credentials.
The signing of the contract follows the electronic signing on 31 July 2025, which marked the formal commencement of the project.
Rail Baltic Estonia CEO Anvar Salomets said: “At ‘kilometre zero’ in Tallinn and Muuga, Rail Baltica begins. Electrification ensures that this starting point in Estonia is not only symbolic, but a real gateway connecting the Baltic region to Europe’s economy.”
Construction for Rail Baltica is currently underway across Estonia, Latvia, and Lithuania, with significant progress on mainline works, international stations, bridges, and crossings.
In Estonia, more than 100km of railway substructure work is ongoing, particularly at the Ulemiste Terminal.
In Latvia, construction focuses on the southern section near Iecava, alongside developments at the Riga Central Hub and Airport terminals.
Meanwhile, in Lithuania, work on the Kaunas–Panevezys section includes 77km of embankments and engineering structures, with plans to cover 114km by the end of 2025, including track-laying and a new bridge over the Neris River.
By the end of 2025, 43% of the Rail Baltica mainline is expected to be construction-ready.
Last month, Rail Baltica signed a €38.31m ($44.5m) contract for design and supervision services on a 96km railway segment linking Poland and Lithuania.
The contract was awarded through a competitive tender and involves RB Rail, LTG Infra, and DB Engineering & Consulting.
