The Ministry of Transport of the Republic of Latvia, the Ministry of Climate of the Republic of Estonia, and the Ministry of Transport and Communications of the Republic of Lithuania have started the implementation of the project in cooperation with the European Commission’s Directorate-General for Structural Reform Support (DG REFORM) and the support of the Technical Support Instrument (TSI) for effective Rail Baltica project implementation and railway infrastructure management, as well as for further provision of transportation services.

The project will be implemented by a consulting company ERNST&YOUNG ADVISORY SAS (EY) selected as a result of the DG REFORM public procurement procedure. The three priority directions of the project will be:

1. Issues of unified cross-border public service obligations (PSO);
2. Development of an effective legal framework and functional institutional framework for the Rail Baltica infrastructure management model; and
3. Development of a financing model for Rail Baltica infrastructure facilities, such as rolling stock depots, cargo terminals, and passenger stations, the costs of which are not covered by the funding of the Connecting Europe Facility (CEF).

The project will study public passenger transport by rail and road, focusing on 2016 amendments to develop cross-border service guidelines. While Latvia, Estonia, and Lithuania have each managed their own railway PSO approaches, effective use of Rail Baltica’s infrastructure will enable regional services beyond national borders. Each Rail Baltica country—Estonia, Latvia, and Lithuania—will own its infrastructure, but the goal is to operate it under unified principles. This requires alignment on safety, traffic control, capacity, fees, and other aspects of the infrastructure management model.

The project will explore additional European and national funding options, both public and private, for Rail Baltica’s infrastructure. CEF funds cover up to 85% of eligible costs, mainly for railway superstructure, substructure, and system installations, while indirect project infrastructure costs remain unfunded.