Government to put another €100 million toward road construction

The government plans to allocate an additional €96.8 million for road construction. Of this, nearly €85 million will come from unused funds under the European Union's cohesion policy, while the remainder will be covered by Estonia's 2025 supplementary state budget.
"The government also analyzed the condition of our highways, and it's clear they've been disproportionately impacted by budget cuts. This is an area that requires significantly more attention than before. We've reached an excellent outcome," said Minister of Regional Affairs and Infrastructure Kuldar Leis.
"We're able to use cohesion fund money — €200 million in total collected from various ministries — of which €84.8 million will now return to the road and infrastructure sector," Leis explained. "Here's how it will be distributed: First, €5.8 million will go toward building a road and rail junction for Rail Baltica near Soodevahe, on the outskirts of Tallinn. The rest will be allocated to two major highways, across three separate projects."
"Second, €17 million is earmarked for the construction of the Märjamaa bypass on the Tallinn–Pärnu–Ikla highway. The 3.5-kilometer four-lane (2+2) segment is scheduled to break ground next year and be completed by the end of 2027," he said.
"A further €42 million will go to the first phase of the Konuvere–Pärnu-Jaagupi section of the same highway. This 6.5-kilometer stretch, which includes the Päärdu bridge, will also be built as a four-lane (2+2) road and is expected to be completed in the same timeframe. Additionally, €20 million is planned for a four-lane segment near the Paia intersection in Imavere, on the Tallinn–Tartu highway," Leis added.
Leis noted that the execution of these projects hinges on the European Commission's approval for the repurposing of the €84.8 million in cohesion funds.
"At last week's meeting of EU transport ministers in Luxembourg, I had the opportunity to speak with the European commissioner for transport and explained that this funding would go toward Rail Baltica and critical highway infrastructure, both of which are strategically important from a security perspective. I believe the Commission understands our intentions very well. We anticipate launching these projects next year or the year after," said Leis.
"On Friday, we submitted a draft supplementary budget to the Riigikogu that includes €12 million specifically for state roads. We created a separate allocation to ensure that, if the supplementary budget is passed, we can begin implementation already this year," he noted.
"We're focusing on developing the core network — especially the Tallinn–Pärnu–Ikla and Tallinn–Tartu routes (rebuilding two-lane roads to have four lanes —ed). We've made real progress on the Tartu route, where about half is already complete, but only 6 percent has been completed on the Pärnu route. Over the coming years, we aim to push that figure past 50 percent," said Priit Sauk, director general of the Transport Administration.
"We've reached an agreement to move forward with construction on the Are bypass — or more precisely, the Libatse–Nurme section — of the Pärnu–Ikla highway. It's a fairly long segment, with 22 kilometers of road that needs to be built. That required additional funding, and €3.5 million from the supplementary budget will go there. We had to cancel the original tender this winter because the bids came in too high. Now we've split the segment into four separate tenders," Sauk said.
"The second project worth mentioning due to its scale is Tõrvandi–Roiu," Sauk added.
A full list of the upcoming road projects can be found in the Transport Administration's road maintenance plan.


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Editor: Mari Peegel, Marcus Turovski