State to allocate €40 million for roads, €14 million to railway sector ({{contentCtrl.commentsTotal}})

Roadwork. Photo is illustrative.
Roadwork. Photo is illustrative. Source: Ken Mürk/ERR

The Estonian government will allocate approximately €40 million from the supplementary budget to road construction and maintenance and another €17 million to the railway sector in which transport volumes have notably declined, the Ministry of Economic Affairs and Communications said.

"We need to allocate more money to the economy in this crisis, and as a result, we'll be able to provide people with higher quality transport infrastructure in the future," Ministry of Economic Affairs and Infrastructure Taavi Aas (Center) said. "In order to boost the economy, we'll increase the role of the state as the contracting entity this year already."

Local governments will receive additional funds from the supplementary budget for road and street maintenance as well as for paving gravel roads. €10 million will be allocated to the Road Administration for increasing construction volumes, likewise primarily in the area of paving gravel roads.

The supplementary budget will also allow for support of the railway sector as well.

"A survey finalized in late March indicated that while cargo volumes have remained unchanged in road transport, the same cannot be said about the railway," Aas said. "The volume of passenger and cargo transport alike has decreased significantly, and both the coping of [state-owned passenger train operator] Elron and [state-owned logistics and transport company] Operail have been affected."

Altogether €17 million from the supplementary budget is planned to be allocated to the railway sector, allowing for the state-owned railway infrastructure company Estonian Railways (AS Eesti Raudtee) to support businesses whose transport volumes have declined as well as prevent the growth of carriage tariffs.

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Editor: Aili Vahtla

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