The Estonian part of the Rail Baltica project has become three times more expensive compared to initial estimates, resulting in a funding shortfall of €2.7 billion. According to a National Audit Office report, this deficit could be reduced to €1.8 billion by constructing only one track pair in certain sections instead of two, and by delaying or gradually developing the areas around the stations.

According to Mart Võrklaev, part of the missing amount could be covered by European Union funds. In this case, there would still be a shortfall of €900 million, which Võrklaev suggested could be covered by the company that will operate the route. He proposed that the company could either take out a loan or raise private funds by going public.

A joint report from the national audit offices of Estonia, Latvia and Lithuania reveals that the cost of purchasing trains has been assigned to an external party, although such a legal entity does not yet exist. Võrklaev sees the possibility of using EU funds for purchasing the trains.

The joint audit report also indicates a problem: trains might not be operational by 2030, as two years are needed for procurement preparation, four years for delivery and two years for testing. Michal stated that the auditors' estimate is conservative, and a private operator could potentially expedite the process.

Climate Minister Kristen Michal noted that private investment might be interested in future revenues. However, he argued that the railway connection is not a project that would make the builder wealthy, as it is a socioeconomically necessary link.

In response to President Alar Karis' question about whether abandoning the Rail Baltica project is an option, both Michal and Võrklaev replied negatively.

Auditor General Janar Holm stated that a lot of time and money was lost in the early stages of the project, and the process was not constructive. "The project has not been well managed over time, and we are losing money because it has not been done properly," he said. As recently as 2021, there was confidence that the project would be completed by 2025.

Overall, the Rail Baltica project in Estonia has progressed well compared to Latvia and Lithuania. By the end of the year, 74 kilometers of track should be under construction in Estonia, with contracts covering an additional 105 kilometers. In Lithuania, the corresponding numbers are 29 kilometers and 77 kilometers. In Latvia, contracts cover 200 kilometers.

--

Follow ERR News on Facebook and Twitter and never miss an update!