New estimate puts Rail Baltica cost at €15.3 billion
The first stage of Rail Baltica is expected to cost more than €15 billion a new report said on Monday, double the price of the original estimate, Latvian national broadcaster LSM reported.
"The implementation cost of the first project phase, which aims to build an operational Rail Baltica line across the three Baltic states connecting to Poland by 2030, is estimated to reach €15.3 billion," RB Rail said in a statement.
One of the reasons for the price hike is higher than expected inflation.
According to the study, Rail Baltica's cost is estimated at €26 million per kilometer. "The average cost per kilometer is €24 million and might reach up to €35 million per kilometer," the company said.
The initial cost of the project was €5.8 billion and 80 percent of the total was funded by the European Union.
In a recent interview with ERR, the European Commission said the Baltics needed to speed up and spend the money already allocated to them. It is not certain how much additional funding will be handed over as the parliamentary term has just ended.
The first stage needs to be completed by 2030. The second stage could cost up to €23 billion.
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Editor: Helen Wright
