Rail Baltica deep evaluation to be completed by end of July; ministry preparing proposals for project's future

The Ministry of Transport (SM) has stated that the in-depth evaluation of the Rail Baltica railway project, conducted by international consultant Alvarez & Marsal, is planned to be completed by July 31 of this year. The evaluation was initiated on November 3 last year following a Cabinet of Ministers decision.

The ministry noted that contractual obligations have been transferred from the state-owned company Latvijas dzelzceļš (LDz) to the ministry to ensure an equal position for all state-owned entities in the evaluation process and to reduce potential conflicts of interest. The deadline for the evaluation has also been extended.

After receiving and assessing the final report, the ministry will prepare proposals for the project's further development. An informative report is scheduled to be submitted to the Cabinet of Ministers by September 30 of this year. The contract value with the consultant is confidential.

The purpose of the evaluation is to obtain an objective and comprehensive analysis of the project's implementation, risks, financial status, and to develop recommendations for efficient, transparent, and sustainable execution.

According to the latest assessment, the first-phase costs of Rail Baltica in the Baltics could reach €14.3 billion, of which €5.5 billion in Latvia, but after indexation, this amount could reach €6 billion. Total project costs in the Baltics could amount to €23.8 billion. In comparison, the 2017 cost-benefit analysis estimated the project at €5.8 billion.

The project involves constructing an 870 km European standard gauge railway line from Tallinn to the Lithuanian-Polish border with a maximum speed of 240 km/h, connecting the Baltic states with the rest of Europe.