The €13.5 million development will be built on an empty plot in Paljassaare, North Tallinn, ETV's "Aktuaalne kaamera" reported on Monday.

While the City of Tallinn has said it is ready to build the development the money will need to be repaid within in 16 years. For this to happen, Tallinn needs funding from the government.

Gren Noormets, CEO of the Film City, said the studio is very much needed. "For 30 years, the Estonian film sector has not been able to make pictures in a controlled environment. For example, the same film that won at Cannes [Compartment No. 6] was made indoors and on a moving train. In fact, it is very easy and much cheaper to create such things in a studio," he said.

Both the Social Democratic Party Riigikogu member Raimond Kaljulaid and Isamaa have said the building of a film studio could be added to the draft of nationally important cultural objects list which can receive government funding.

"This project has very strong potential, not only domestic but also international potential. On the other hand, it is also important that the implementation of this project creates new and interesting jobs in Estonia and opportunities for people to find work in cinema and television production," said Kaljulaid, who is the SDE's candidate for mayor of Tallinn in the upcoming local elections.

It is not yet known if the studio will be added to the list and the decision will be made later this year.

Last week the Finnish-Estonian-German-Russian film Compartment No. 6 won the main prize at the internationally renowned Cannes Film Festival.

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