At a Riga summit, the prime ministers of Estonia, Latvia and Lithuania agreed to establish a joint company for Rail Baltic before the end of the year.
"A joint company will be established in the coming months. An application for financing from the European Union is being prepared," Latvian Prime Minister Valdis Dombrovskis said on ETV.
The prime ministers also discussed the opening of the Baltic power market, a contentious issue lately as Estonian officials say Latvia and Lithuania are violating regulations by withholding large quantities of electricity from the exchange.
"We hope that at some point Latvia and Lithuania will also begin selling their whole supply through the exchange and that would secure price equalization," Ansip said.
The prime ministers also discussed the power bottleneck between Estonia and Latvia, and said plans to build a new transmission link between the two countries by 2020 should be sped up significantly.