02.10.2024
Rail Baltic Estonia has announced two major tenders, the total value of which could exceed 1 billion euros, securing the creation of a rail connection between Estonia and the rest of Europe. As a result of the alliance tender, two contracts will be signed for the construction of the Rail Baltica main line between Ülemiste and Pärnu and the Pärnu and Latvian border, the total value of which, together with additional opportunities for the procurement of strategic materials, could reach 932 million euros. In addition, a 57 million euro tender will be announced for the construction of the Ülemiste Linda terminal building.
“Rail Baltica will connect Estonia to the European rail network, creating a new economic and mobility corridor that will benefit not only the Baltic States, but also Finland, Central Europe and further afield. The long-term impact of its construction on our economy will be clearly positive, bringing an estimated €650 million in tax revenue to the state budget. Today we are celebrating an important milestone in the development of Rail Baltica Estonia by announcing the largest infrastructure procurement in the country’s history, worth almost €1 billion,” said the Minister of Infrastructure. Vladimir Svet.
“The announcement of these tenders allows us to take an important step forward. The construction of the main line and the Ülemiste terminal will not only bring better connections to Europe, but also new opportunities for local entrepreneurs. All project partners – architects, engineers and builders – are working towards the full completion of the Rail Baltica railway by 2030, serving both passengers and freight," bits Anvar Salomets, Chairman of the Board of Rail Baltic Estonia.
The Linda terminal in Ülemiste will become one of the most modern and environmentally friendly transport hubs in the region, combining international train traffic with local transport solutions.
The first phase of the Ülemiste Linda terminal construction project, which includes the construction of underground load-bearing structures, pedestrian tunnels and utility rooms, has already begun. The next phases of the project will include the construction of the terminal building and adjacent areas, including the tramway and parking lots.
Gianluca Racana, a board member of Zaha Hadid Architects, whose firm won the terminal's architectural competition in collaboration with Estonian company Esplan, added:
“The design of the Ülemiste terminal is designed to integrate seamlessly with the surrounding environment, offering passengers a high level of comfort and connectivity. The project also takes into account modern environmental sustainability standards, making it a state-of-the-art transportation hub for the 21st century.”
Alliance procurement is a project implementation model where key project stakeholders – the client, the designer and the builder – work closely together towards a common goal. This means that they share responsibility and risks, work as a unified team and always make decisions with the overall benefit of the project in mind. The aim is to achieve the best possible result in terms of quality, schedule and cost-effectiveness.
The aim of the alliance tender is to find two strong bidders with whom separate contracts will be concluded for the two railway sections. The first contract covers the superstructure of the Ülemiste–Pärnu section and the substructure of the Tootsi–Pärnu section, with an estimated cost of 394 million euros. The second contract, estimated at 332 million euros, covers the design and construction of the Pärnu–Ikla section. A single ranking will be drawn up during the tender: the bidder who wins the first place will sign the contract for the construction of the Ülemiste–Pärnu section (Alliance 1), and the bidder who wins the second place will sign the contract for the Pärnu–Ikla section (Alliance 2).
The total volume of the contracts is therefore estimated at 726 million euros, but with the additional option of procuring strategic materials (e.g. rails, sleepers, switches and ballast), the total cost could reach 932 million euros.
The construction of the main route of Rail Baltica will be divided into several stages. First, the development stage will take place in 2025–2026, during which a detailed design will be prepared, the necessary permits will be applied for and preparatory work will be organized. Then, construction works will begin, lasting from 2026 until the end of 2030. Final completion and commissioning are planned for the fourth quarter of 2030, when Rail Baltica will begin serving both passengers and freight.
The more detailed schedule for the construction procurement of the Ülemiste terminal provides for the signing of the contract in April 2025. Construction work will begin in November of the same year and the building will be completed in February 2028. Final completion and handover of the building to the client is planned for October 2028.
These procurements not only mark a significant step forward in the construction of Rail Baltica, but also the implementation of an effective cooperation model. Alliance procurement allows for cost reduction and process optimization. Successful implementation of the project requires precise planning and close cooperation between all parties.
Procurement in a nutshell:
Alliance procurement for the construction of the main line: The total value of the procurement could reach up to 932 million euros, with the additional option of acquiring strategic materials.
Main line contract 1: includes the superstructure of the Ülemiste–Pärnu section of the railway and the substructure of the Tootsi–Pärnu section. Estimated cost: 394 million euros.
Main line contract 2: Complete design and construction of the Pärnu–Ikla section. Estimated cost: 332 million euros.
Construction procurement for the Ülemiste Linda terminal: Construction of the terminal building and adjacent southern outdoor areas, including the tramway and parking lots. The total construction cost amounts to 57 million euros.
Main line construction schedule: The development phase will begin in the third quarter of 2025. The construction phase will begin in the third quarter of 2026 and end in the fourth quarter of 2030.
Ülemiste terminal construction schedule: Terminal construction work will begin in November 2025 and the building will be completed in February 2028. The building will be handed over to the customer in October 2028.
PRESS MATERIALS
Tender announcement PHOTO GALLERY
Visuals of the Ülemiste passenger terminal
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