EU – Baltic States, Financial Services, Latvia, Railways, Transport

By 2020, the Baltic States will receive a total of EUR 442.2 million (co-funding of 81.82%) for this project.

According to Berzins, the funding for the first round of the Rail Baltica project in Latvia will be used to build a railroad between the Riga Central Station and Riga Airport between 2018 and 2020. The Transport Ministry has also signed agreements on a research project for building a logistics center near Salaspils and draft designs for potential reconstruction of the Riga Central Station. The station will serve as a multifunctional hub, connecting the Riga International Coach Terminal, 1,520 and 1,435 millimeter gauge stations.

"Whether the funding allotted thus far will be used for reconstruction of the station depends on the latest estimates. As soon as we get to know the technical solutions and layouts for the railroad, we will have more accurate figures. According to the technical specifications, the updated research must be ready by the end of 2016. This is an enormous project – it concerns not only cargo and passenger turnovers of all three Baltic States, but also port and airport growth, global development, as well as the Russia factor. An analysis of costs and benefits will have to be submitted in order to receive the European Union's co-funding for the next round," the company's representative said.

As reported, the Rail Baltica project deals with construction of a new 1,435 millimeter standard-gauge railroad in the Baltic countries. The implementation of project could cost EUR 1.27 billion to Latvia and EUR 3.68 billion to the Baltic States altogether. The European Commission could co-fund 85% of the project's costs. The request for funding was submitted to the European Commission in the spring of 2015, so construction of the railroad could begin in 2016. Further funding for the project is to be provided as part of the next financial period that will begin in 2020.