Minister: Rail Baltica construction costs in Estonia have risen to €3.5 billion
Estonia's minister told parliament that building the Rail Baltica railway line in Estonia is now estimated at €3.5 billion, €400 million more than in late 2023. A further €550 million is needed for accompanying infrastructure.
Estonian minister Leiss told the Riigikogu, the country's parliament, that building the Estonian section of Rail Baltica, the Baltic rail project, has become more expensive. The latest estimates put the cost of the railway line at €3.5 billion, which is €400 million more than in calculations made at the end of 2023. Rail Baltica is planned as a European standard-gauge railway that will link the Baltic states with the rest of Europe.
Estimates and unknowns
Responding to a question from Evelin Poolamets of EKRE, the opposition right-wing populist Conservative People's Party, the minister recalled that in late 2023 construction was estimated at €3.1 billion, with another €300 million set aside for additional expenses. Now, accompanying infrastructure requires a further €550 million. The estimates assume the project will be completed in 2034. Leiss said total costs could change depending on construction schedules, inflation and other significant factors. Asked how much money has already been spent, the minister did not give an exact figure.
Priority and other plans
The minister called Rail Baltica a national priority and stressed that it would benefit Estonia during construction itself, by raising tax revenue, creating jobs and spurring real estate development. He also presented the implementation of the "Estonia 2035" strategy in his area. About €1 billion is planned this year and the next three for road construction, maintenance and safety. The goal is to widen the highways to Tartu and Pärnu to four lanes by 2035; four-lane sections of the Tallinn–Pärnu road are currently being built over 45 kilometres.
In housing, €160 million is allocated for renovations in 2027–2028, enough to renovate about 500 buildings, and a programme for 1,000 new rental homes is being prepared with the European Investment Bank.
Costs across the Baltics
The first-phase cost of Rail Baltica across the Baltic states could reach €14.3 billion, of which €5.5 billion is in Latvia. The overall project cost, according to a cost-benefit analysis, could reach €23.8 billion, compared with €5.8 billion estimated in 2017. The plan is a new 870-kilometre line with a maximum train speed of 240 kilometres per hour.
