€295.5 million EU grant boosts Rail Baltica construction progress across Estonia, Latvia, and Lithuania

Credit: Rail Baltica

Rail Baltica, Europe’s flagship cross-border rail project, has received a €295.5 million grant from the European Union to advance construction across Estonia, Latvia, and Lithuania. The grant agreement was signed by RB Rail AS, the project’s central coordinator, during a high-level meeting in Vilnius on 21–22 October with representatives of the European Climate, Infrastructure and Environment Executive Agency (CINEA). The funding supports continued implementation of key sections and technical activities across all three countries, with approximately €47.1 million allocated to Estonia, €153.5 million to Latvia, and €94.9 million to Lithuania, including RB Rail AS’s share as joint project coordinator.

In Estonia, the funding will help complete the mainline from Tallinn to the Estonia–Latvia border, including 10.2 km of embankment and double-track substructure in the Rapla–Pärnu section. In Latvia, works will focus on constructing railway embankments in four southern sections of the mainline, covering 13.3 km, and include access and maintenance roads, water drainage systems, and other necessary infrastructure. Funding will also support construction supervision, technical design of the Rail Baltica electrification project in the Upeslejas–Latvia/Lithuania border section, and project implementation measures including FIDIC engineer services.

In Lithuania, the grant covers construction of key structures such as overpasses and railway crossings in the Kaunas Urban Node section. Technical studies and design work are included, covering regional station infrastructure, sections from Kaunas to the Lithuanian–Polish border, and executive design services. Land acquisition and related procedures will also be carried out in the Kaunas area. The financing allows RB Rail AS to continue overseeing cross-border project coordination in line with the Project Management Agreement.

Marko Kivila, CEO and Chairman of the Management Board of RB Rail AS, said: “CINEA’s continued support enables us to keep steady progress on the Rail Baltica mainline construction. With this funding, we can advance key sections in all three countries.”

The high-level meeting in Vilnius brought together CINEA and Rail Baltica delivery organisations to review project progress and coordination under CEF funding. Participants visited key construction sites in Lithuania, including the Neris Bridge, where 8.8 km of double-track structures and embankments are being built. Ojārs Daugavietis, Member of the Management Board and Chief Financial Officer at RB Rail AS, commented: “Effective cooperation and open, transparent reporting between RB Rail, CINEA, and the national implementing bodies are key to maintaining trust and ensuring steady project delivery. This close coordination enables us to identify and resolve challenges early, accelerate decision-making, and keep the Rail Baltica on track toward its objectives.” The next CINEA progress visit is planned for Latvia in November 2025.

Rail Baltica is now in full-scale construction across Estonia, Latvia, and Lithuania, with mainline works, international stations, bridges, and crossings advancing. In Estonia, 105 km of substructure and related infrastructure, including overpasses, crossings, and traffic junctions, are under construction. Contracts for 200 km of substructure and superstructure construction have been signed, with more than 100 km currently being built, including the flagship Ülemiste Terminal.

In Latvia, construction of the mainline prioritises the southern section near Iecava, connecting Riga to the Lithuanian border. This area is one of the most active construction zones, with large-scale earthworks, road crossings, and engineering structures forming part of the 202 km of infrastructure across the country. In Lithuania, work is progressing on the Kaunas–Panevėžys section, where 77 km of embankments and engineering structures are being built. By the end of 2025, construction will extend over 114 km, including track laying and a new bridge over the Neris River, the longest in the country.

By the end of 2025, 43% of the Rail Baltica mainline is expected to be construction-ready, marking a decisive leap forward for one of Europe’s most ambitious cross-border rail projects.