The projected cost of Rail Baltica has increased, and so has the funding gap, and Latvia is considering a one-billion-euro loan to provide the necessary funds for rail infrastructure, on Tuesday, the 19th of November, reports RailFreight.
In total, Latvia needs 6.4 billion euros for the railway line.
According to Latvia’s transport minister, three to four billion euros are still missing. The EU was originally expected to finance 85% of the total project cost, but given the rapidly rising estimated costs, this seems unlikely.
To get closer to the funding it needs, Latvia is now considering a one billion euro loan for the Rail Baltica project.
So far, both EU and national co-financing has been just over 1.4 billion euros. The Ministry of Transport has proposed to reallocate around 340 million euros from other EU funds. However, it is already clear that this will not be enough.
Latvia has previously floated the idea that its section of Rail Baltica could be a single-track line, thus significantly reducing costs. It could also build fewer noise walls, road links and abandon the idea of connecting Riga airport to Misa. These measures could reduce the cost of Rail Baltica in Latvia from 6.4 to five billion euros.
Latvia is the last of the Baltic countries where Rail Baltica construction has not yet fully started.
Also read: Rail Baltica disaster: costs increased by billions, project delayed by years
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Publish date : 2024-11-18 16:01:00
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