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Minister of Light: We will complete Rail Baltica without any new taxes

Министр Свет: достроим Rail Baltica без всяких новых налогов

The Rail Baltica project has proven to be too much for Latvia. How can a single route be completed if the neighbors have no money? Will the moment of truth come for everyone? Why did the State Audit Office, along with Rail Baltica, harshly criticize the program for building rental houses in the regions?

The Rail Baltica project has proven to be too much for Latvia. How can a single route be completed if the neighbors have no money? Will the moment of truth come for everyone? Why did the State Audit Office, along with Rail Baltica, harshly criticize the program for building rental houses in the regions?

Minister of Infrastructure Vladimir Svet answered questions from Rus.Postimees live on air.

Excerpts from the conversation :

– In Latvia, they can’t finish building railway stations and bridges. Is Rail Baltica turning into an abandoned, long-term construction project?

– Absolutely not! A week and a half ago, both Latvia and Lithuania assured their fellow ministers that they were making every effort to ensure that Rail Baltica would be completed by 2030.

What is the problem of our southern neighbors? The fact is that in addition to the main Tallinn-Warsaw route, they would like to build additional branches: Latvia – to the center of Riga, where the terminal is already being built, and Lithuania – to Kaunas.

What is important is that Rail Baltica is a pan-European project that is being implemented not only in the interests of the three Baltic States, but also in the interests of the entire European Union in terms of trade, movement of people and, if necessary, military equipment.

The European Commission covers 85% of the costs associated with the construction of the main railway route. All countries must build facilities that are not on the main route at their own expense.

Latvia understands the need to focus on building the main railway. In parallel, they will have to find additional funding for the construction of the branch to Riga.

– How can we complete the construction of a single highway if one of the countries has run out of money?

– There are problems with financing in all three countries. The task now is to find this money. Let me remind you that the Estonian government has allocated an additional 200 million euros from the sale of CO2 quotas. Lithuania is negotiating with the European Commission about the possibility of using the funds that were not spent by the established deadline. Latvia is also looking for an opportunity to make a payment that would allow the construction of the road to continue.

The main source of funding is European funds. The main issue is that the European Commission will continue to finance the project at the same level after 2028, when the new budget period begins.

I can assure you that the Minister of Transport and the Estonian government consider this project a priority. Our colleagues from Latvia and Lithuania also feel the same way. We are discussing, among other things, how to jointly find the missing funds, if necessary.

– And how? Introduce a new tax that will allow the completion of Rail Baltica?

– No taxes in the interests of Rail Baltica are being discussed!

We are working in two directions. In order for the European Commission to continue funding the project, we need to show that we are doing it effectively. In the case of Estonia, this is true. The latest tenders have brought lower prices than planned. The savings can be used for the next sections of the road.

Together with other countries, we are proving to the European Commission that we will be able to complete construction by 2030. We have reduced the investments in the project that can be made after the launch of the train. Namely, we have left only one pair of rails on some sections instead of the previous two and have organized tenders better.

The second line, which we are pursuing with our partners, is to find the missing funds in case the European Commission continues to finance the project at the same level. The possibility of an investment loan at the level of the Rail Baltica joint venture or at the level of the three countries is being discussed.

– Are you sure that the Rail Baltica project will not stall in Estonia, as it did in Latvia?

– In Estonia, it is not like in Latvia and Lithuania. We are moving at a faster pace. I can assure you that our colleagues from the Baltic countries are doing everything possible to move the project forward.

There is a general understanding that this railway only makes sense if it extends from Tallinn to Warsaw, opening up new transport corridors for Finland, as well as central, eastern and southern Europe. Only then will the railway bring serious added value to our economy.

And if we can launch a regional train between Tallinn and Pärnu, then of course we will do it.

– When will it be possible to travel to Pärnu on the new train?

– Our goal is to have Rail Baltica completed along its entire length by 2030. Whether it will be possible to launch something earlier on individual sections is a very difficult question.

It is one thing to build a railway, another thing to test a train and get the necessary certification. It is clear that this project has many variables, problems and risks.

I believe that instead of thinking about suspending the project, we need to solve the problems that arise and move forward with this construction.

– Why was the Tartu-Riga train not launched on time?

– This question should be addressed to Elron. In my opinion, the deadline for launching interstate rail service was set too optimistically. In this case, many different standards need to be agreed upon, trains need to be certified, and the schedule needs to be adjusted.

I would like to point out that just yesterday the government made a decision to allocate the funds necessary to launch a train between Tartu and Riga in the next six months.

– Is there any hope of reaching Haapsalu in the foreseeable future? Everything has already been designed there, all that remains is to build…

– We are talking about the Haapsalu-Rohuküla railway line. The port from where ferries depart to Hiiumaa is important in this chain. The cost of the project is 115 million euros as of last spring. It would be strange to hide the fact that there are currently no such funds in the budget. As soon as the money appears, we will continue to move forward with this project.

More details in the replay!

Postimees Studio: Is Dusk Falling Over Rail Baltica? The Minister of Light Answers Studio Postimees: Is Dusk Falling Over Rail Baltica? The Minister of Light Answers Photo: Mihkel Maripuu

  • A storm is raging over Rail Baltica. Latvia cannot complete the station, terminal and bridge. Is the project turning into an abandoned long-term construction project?
  • According to the State Auditor, Rail Baltica's goals are unrealistic: deadlines and budgets are slipping. What conclusions have been made?
  • Are there any guarantees that construction projects that have begun in Estonia will not be abandoned?
  • Where will the 200 million euros allocated by the Estonian government from the sale of CO2 emission quotas be invested?
  • In what year will it be possible to travel to Pärnu and intermediate stops?
  • When will it be possible to buy a ticket to Riga, Vilnius or Warsaw?
  • Why was the Tartu-Riga train not launched on time?
  • What are the prospects for a railway connection with Haapsalu?
  • The State Audit Office criticized the program for the construction of rental houses in the regions. Why does it not promote labor mobility and the development of entrepreneurship?

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