Latvia sets 20 million euro per kilometre cap for Rail Baltica

The Latvian government has established a maximum cost ceiling of 20 million euros per kilometre for the Rail Baltica railway project. Prime Minister Andris Kulbergs announced the decision following an extraordinary Cabinet meeting, citing a study by independent consultants.

The new limit covers tracks, electrification, and signaling systems required for trains to operate on the main line, though it excludes major structures. Previously, costs had ranged between 28 million and 32 million euros per kilometre. Kulbergs noted that the failure to set a budget ceiling as early as 2015, combined with changes to technical specifications, led to significant cost increases.

Under current contractual terms, the project has seen a cost overrun of 450 million euros to meet commitments related to Connecting Europe Facility (CEF) funding. The Ministry of Transport is tasked with developing a minimum project scenario by December to determine the actual costs of the first phase. The approved scope for this initial phase includes constructing a single-track main-line embankment with the potential for a second track in the future, alongside no more than four regional stations.