Tallinn Cancels Construction Contract for Endla Street Tunnels

The City of Tallinn has decided to terminate its construction contract with INF Infra OÜ for the Endla Street pedestrian and cyclist tunnels, stating that the contractor failed to fulfil its obligations under the agreement.

The project aimed to build two new tunnels under the railway embankment to connect the Tehnika Street area with the Kristiine keskus shopping centre, currently requiring pedestrians and cyclists to use a roadside pavement. The plan also included the reconstruction of surrounding roads and pavements and the installation of nearly 200 metres of new sewer pipeline in cooperation with Tallinna Vesi.

Construction began on 22 October last year with the installation of a sewer pipeline by Tallinna Vesi. All pipeline work related to the project has now been completed, with a total value of just over €2 million (including VAT).

However, subsequent work encountered significant issues. The City of Tallinn said INF Infra OÜ was unable to obtain approval from Estonian Railways for tunnel installation methods that would require closing the railway line. Deputy Mayor Kristjan Järvan (Isamaa) noted that passenger train operator Elron did not want to suspend rail traffic during the construction.

"Since the contractor has a construction contract with the City of Tallinn that it is unable to fulfil, we are forced, as the City of Tallinn, to terminate the contract," Järvan said.

Elari Udam, head of Tallinn's Environment and Public Works Department, said the contractor failed to fulfil its contractual obligations, did not submit an updated work schedule or an action plan to address delays, and stated it was not prepared to build the tunnels at the contracted price. The contractor also indicated the final deadline would need to be postponed to 2028, missing the originally agreed 2027 deadline.

"Since the contractor failed to submit the required schedule and did not confirm its readiness to continue construction based on the existing project and the contractual price, Tallinn's Environment and Public Works Department decided to terminate the contract due to the contractor's material breaches of contract," Udam said.

Tallinn's Environment and Public Works Department is preparing next steps to continue the Endla tunnel project as quickly as possible, aiming to complete the long-awaited connection between Kristiine and the city centre in the future. Originally, the tunnels were scheduled for completion in January 2027. The total project cost is €4.2 million (excluding VAT), financed by the City of Tallinn and Tallinna Vesi.