Latvia sets 20 million euro cost cap per kilometer for Rail Baltica

The Latvian government has established a cost ceiling of 20 million euros per kilometer for the Rail Baltica project. Prime Minister Andris Kulbergs announced that this limit covers tracks, electrification, and signaling, but excludes major construction. Previously, costs per kilometer had fluctuated between 28 and 32 million euros.

Kulbergs noted that the lack of a defined budget ceiling since 2015 contributed to the project's current complexities. He highlighted a 450 million euro cost increase related to obligations from the Connecting Europe Facility (CEF) funding. The Ministry of Transport is tasked with developing a minimum project scenario by December to determine the requirements for a functional railway.

These fiscal decisions come amid political discussions regarding the upcoming 15th Saeima elections. Political analysts suggest that conflicting views on the future of major projects like Rail Baltica and airBaltic, alongside differing economic platforms, may complicate the formation of future governing coalitions.