Latvia’s public broadcaster reported an increase in the cost of the Baltic Railway project, this is reported by the railway transport news portal Railway Supply.

Rail Baltica

Rail Baltica, a high-speed rail project connecting Lithuania, Latvia, Estonia, and Poland, has encountered significant obstacles due to funding issues and project delays, according to the Latvian public broadcaster.

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The De Facto show on Latvia’s public channel LSM revealed that the EU-supported project’s cost is likely to rise to 8 billion euros (8.7 billion dollars), not the initially agreed upon 5.8 billion euros (6.2 billion dollars).

Delays are critical as EU funding is time-limited, and if modern rail connections between Baltic countries are not established by 2030, Rail Baltica could lose access to nearly 1 billion euros.

In response to delays and increased expenses, the Latvian government stated it is considering changes to its plans, with a key discussion focusing on a proposed railway bridge in the capital city, Riga.

The Riga issue complicates progress already made on the city’s new central station. If a decision is made to alter the first phase of Rail Baltica’s route beyond the capital, the project risks becoming very costly.

A contract with a Spanish firm for designing the route through Riga was canceled, according to Rail Baltica representatives. A new tender will begin in December, as announced by the managing company.

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