European court of audit reports cost overruns for Rail Baltica project

Subscribe to our newsletter and get the latest news and business opportunities in your inbox

European Court of Auditors report concluded approximately EUR 2.35 billion (US$ 2.65 billion) in cost overruns for the Rail Baltica project. Initially, the project was planned to have expenses of EUR 4.64 billion (US$ 5.23 billion) or allocated EUR 5.8 billion (US$ 6.54 billion), but now the project is expected to cost EUR 7 billion (US$ 7.90 billion). The risk of even more increment in cost is present. 

The Rail Baltica network, a high-speed line of 870 kilometers of double track and standard gauge, will quickly, sustainably and securely connect the capitals of Estonia, Latvia, and Lithuania and offer a direct connection to the rest of Europe, without requiring adaptations. Currently, the Baltic States have different track gauges than the rest of Europe, so until the new line is available it is necessary to adapt widths or change vehicles, with the costs that this entails in terms of time and money. For this reason, most of the goods traffic and rail services in the Baltic States is with the countries of the Commonwealth of Independent States (CIS), mainly Russia, instead of the rest of the EU through Poland, something which the new rail infrastructure will foreseeably improve on.

The auditor report also states the uncertainty of economic longevity as the traffic headed North-South is not significant, and most freight is carried by land or by sea. The project is also prone to extend the deadlines for the works. A mixed-type passenger-freight transport line is required to make the project economically feasible. 

List of the country updates

Country updates

  • June 25, 2020

    Design engineering and supervision consulting contract awarded for strech of Rail Baltica project

    Prointec, the subsidiary of Indra, in consortium with German company OBERMEYER Planen + Beraten GmbH was awarded the design engineering and supervision of 93.5 kilometer railway section of Rail Baltic...

    Read more
  • June 25, 2020

    Design engineering and supervision consulting contract awarded for strech of Rail Baltica project

    Prointec, the subsidiary of Indra, in consortium with German company OBERMEYER Planen + Beraten GmbH was awarded the design engineering and supervision of 93.5 kilometer railway section of Rail Baltic...

    Read more
  • June 17, 2020

    Estonia's first PPP road project under discussion

    The government of Estonia will discuss the first road project procured on public-private partnership (PPP) mode during Cabinet meeting in June. It will decide on the preparation and announce...

    Read more
  • June 16, 2020

    EU seeks public consultation for boosting renovation of buildings

    The European Commission has announced the opening of public consultation on boosting the renovation of buildings across the EU. The Renovation Wave initiative is a priority under the Europea...

    Read more
  • June 12, 2020

    Financial close for schools PPP project in Espoo

    The city of Espoo has closed the first Finnish public-private-partnership (PPP) financing in support of public education infrastructure. Kumppanuuskoulut Oy, the special purpose vehicle formed by YIT...

    Read more

Share this update