Funding expansion of Rail Baltica project sought for an additional €325 million
The Rail Baltica project, a cross-border rail connection spanning Estonia, Latvia, and Lithuania, is making significant strides towards completion. As of mid-2025, around 43% of the mainline, equating to approximately 160 kilometers, is expected to be under construction by the end of the year.
Recently, the European Commission granted an additional €295.5 million to support ongoing construction, power supply system design, and cross-border coordination efforts. This funding, the maximum available under the 2023 Connecting Europe Facility Transport call, will be distributed among the three countries. Latvia will receive approximately €153.5 million, Lithuania €94.9 million, and Estonia €47.1 million.
In Latvia, the application includes the construction of 14.2 kilometers of railway embankments on the southern section of the Rail Baltica mainline, as well as the first phase of technical design for the Rail Baltica electrification project. Additionally, support measures for project implementation have been included in the funding application.
The project has already secured over €4 billion in funding, with significant contributions coming from the EU and member states. The completion date for the project has been pushed back from 2026 to a provisional date of 2030.
To ensure timely project delivery, Rail Baltica is exploring additional financing options, including public-private partnerships (PPP) and funds from the EU’s Military Mobility Fund. These mechanisms aim to complement the current funding package.
Marko Kivila, interim CEO and Chairman of the Management Board at RB Rail AS, stated that securing this funding will help take significant steps toward completing this vital infrastructure. More details about the project can be found at Rail Baltica's official website.
By the end of 2025, Rail Baltica expects to have 43% of the mainline ready for construction. The remaining challenges are being addressed through innovative funding approaches, confirming strong EU and regional support for the project.
| Aspect | Details | |-----------------------|------------------------------------------------------------| | Current construction | ~43% of mainline under construction by end of 2025 (~160 km) | | Recent funding | €295.5 million EU grant allocated July 2025 | | Total funding secured | >€4 billion | | Funding recipients | Latvia (€153.5m), Lithuania (€94.9m), Estonia (€47.1m) | | Additional funding | Exploring PPP models and EU Military Mobility Fund | | Expected completion | Cross-border rail connection targeted by end of 2030 |
- The recently secured €295.5 million EU grant will be used for ongoing construction, power supply system design, and cross-border coordination efforts on the Rail Baltica project.
- The EU backs the Rail Baltica project, providing substantial financial support, with over €4 billion secured so far.
- In addition to the current funding package, Rail Baltica is exploring innovative financing options such as public-private partnerships (PPP) and funds from the EU’s Military Mobility Fund to complement the project's completion.
