Construction of the new tramway, which will connect Old City Harbor with the future Ülemiste Terminal serving Rail Baltic as well as Tallinn Airport, will take place along a nearly 2.5-kilometer route starting from the intersection of Kivisilla tänav and Gonsiori tänav and reaching Põhja puiestee. Construction will take 30 months, i.e. two and a half years, from the conclusion of the contract.

Signing the construction contract with representatives of the winners of the international procurement and TPJ Inseneribüroo OÜ on Tuesday are representatives of the City of Tallinn's Urban Environment and Public Works Department as well as from the co-financing city-owned public transport company Tallinna Linnatranspordi AS (TLT).

Merko Ehitus and KMG Inseneriehituse AS won the procurement for the construction of Tallinn's Old City Harbor tramway with a tender costing €36.5 million. Together with VAT and owner supervision, the city's planned new tramway will cost approximately €46 million.

€26 million in funding for the project will be covered from the EU's Recovering and Resilience Facility (RRF).

The completely new section of the tramway will begin at the intersection of Gonsiori and Kivisilla tänavad in the city center, turn northward toward the sea by Kaubamaja and have stops at both Old City Harbor and Linnahall.

Once it's complete, the Old City Harbor tramway will mark just the second new tramway to be built in Tallinn since Estonia regained its independence in 1991.

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