Latvia to miss Rail Baltica 2030 deadline

Latvia is unlikely to complete its section of the Rail Baltica route by 2030. Estonia, however, does not intend to slow down; it plans to move forward with construction as scheduled and launch a train procurement process to ensure trains can run between Tallinn and the Latvian border starting in 2030.
It would be realistic for Latvia to complete its section of the Rail Baltica route only by 2035 — not by 2030 as planned — due to a funding gap spanning several years, said Andris Kulbergs, chair of the Latvian Saeima's Rail Baltica inquiry committee, during a visit to the Riigikogu Anti-Corruption Select Committee in Tallinn Monday.
"It will take at least seven to eight years to reach Salaspils, so 2035 is the earliest we can realistically expect to reach the Estonian border," Kulbergs said.
Estonia, however, is pressing ahead with plans to complete its section by 2030 as originally scheduled. The country is already preparing a procurement process for trains that will operate on the Estonian segment of Rail Baltica.
"No one has officially confirmed that Latvia won't be ready by 2030," said Anvar Salomets, CEO of Rail Baltic Estonia.
"If Latvia really doesn't keep pace, then domestic transport in Estonia will begin operating, and that's exactly why we have a fresh update: we're preparing a tender specifically for trains that will run within Estonia," added Minister of Infrastructure Kuldar Leis.
International train procurement will take place jointly at a later date.
Anastassia Kovalenko-Kõlvart, a member of the opposition Center Party and head of the Riigikogu Anti-Corruption Select Committee, believes Estonia should redirect its attention and funds elsewhere rather than toward purchasing trains and building the rail line.
"Right now, Estonia is in a situation where it's spending billions to build a railway and buying €70 million worth of trains just to travel from Tallinn to Häädemeeste. On top of that, the annual subsidy — an additional cost — will be another €50 million. Meanwhile, our roads are falling apart, there's no more talk of four-lane highways, yet we're ready to invest billions into a railway that, at best, only goes to the Latvian border," said Kovalenko-Kõlvart.
In her view, Estonia should apply the brakes. Kulbergs also believes Estonia shouldn't race ahead, arguing that if the full route isn't completed by the 2030 deadline, the financial penalties will be shared.
"We have a contract. All three of us — Estonia, Latvia and Lithuania — are in the same boat. If one of us fails, we all share the cost. The penalties must be paid even on another country's behalf," said Kulbergs.
"The National Audit Office confirmed in today's session that the contracts include clauses stating that if one country doesn't finish on time, there may be a requirement to repay the funding, which could mean shared liability," Kovalenko-Kõlvart added.
The infrastructure minister denies such an obligation exists.
"If Estonia completes its section, then everything is fine on our end, and Latvia simply has to take responsibility for its own part. There will be no shared penalty. About 80 percent of the funding is from the European Union, allocated specifically for this project, and if Estonia's share is €500 to €600 million, then that same amount essentially returns to the Estonian state in taxes — through construction companies and labor taxes. So financially, this is essentially a break-even project for Estonia," Leis affirmed.
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Editor: Marcus Turovski, Johanna Alvin