Rail Baltica's Ülemiste terminal construction costs fall due to phased tendering
After a change of strategy to finance the construction of Rail Baltica's Ülemiste terminal in phases, more bids have been received. The cost has become more suitable for the contracting authority.
Two years ago, the public tender for the construction of the Ülemiste terminal Linda failed. At the time, only one construction company from Italy submitted a bid, which was several times higher than the estimated construction cost of €346 million. Rail Baltic Estonia (RBE) then changed its procurement strategy and is now financing the construction of the Ülemiste common terminal in five phases.
According to Rašid Pulatov, RBE's technical manager, it is easier to receive bids when tendering in phases.
"Today we have two phases under contract and the contract for the third phase will be in place soon. It [procurement in phases] was definitely a good decision, because the price is one thing, and a larger number of bidders is another," Pulatov told ERR.
The total cost of the Ülemiste joint terminal, including its design, will amount to around €200 million.
Pulatov was asked whether the reduction in the cost of building the common terminal would mean some things being left unbuilt.
"The [price] gain will come from the fact that we have divided up the project and so it will be more understandable for our partners. That one Italian company that bid close to €350 million actually priced it as more due to the risk of it being such a big project," Pulatov said.
Rail Baltica is expected to be operational in 2030. The railway and one terminal will be completed by the end of 2029.
"In fact, we could be ready a little earlier. In 2030, we should be able to move the trains on it. The infrastructure must not be ready too soon, because then you will immediately incur maintenance costs. We undoubtedly have the capacity, for example in the case of the Ülemiste terminal, to do it more quickly if necessary, but for the time being we are still working on the assumption that construction will be finished by the end of 2029," said Pulatov.
Last October, preparatory works for the Ülemiste terminal started and Eesti Raudtee's tracks were re-laid to make way for the new railway lines.
This May, the foundation stone was laid. The Ülemiste terminal is being built in a total of five phases, two of which are currently in progress. RBE hopes to launch a third tender later this year.
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Editor: Michael Cole
