Financing of the Estonian part of the RB project:
The funding sources for the Rail Baltica project are targeted external grants, which are mediated through the Estonian state budget, supplemented by mandatory national co-financing. The project has been financed mainly with the support of the Connecting Europe Facility (CEF), supplemented by revenues from the European Union's greenhouse gas emission allowance trading system (EU ETS or CO2 funds), Structural Funds (SF) and Recovery and Resilience Facility (RRF) funds and national co-financing.
Connecting Europe Facility (CEF)
The Connecting Europe Facility (CEF) is a European Union funding programme aimed at developing trans-European transport, energy and digital infrastructure. In the transport sector, it helps to build new and upgrade existing transport infrastructure across Europe. The funding focuses on cross-border projects and investments that help to eliminate bottlenecks in the transport network and connect previously missing connections. Through EU-funded projects, CEF Transport helps to implement the core and comprehensive network objectives of the Trans-European Transport Network (TEN-T), improving connectivity, mobility and economic cohesion in Europe. Rail Baltica is one of the European Union's priority TEN-T projects and its main source of funding is CEF.
The total amount of CEF funds allocated to the Estonian part of the Rail Baltica project for the 2014-2020 and 2021-2027 EU funding periods is 898,2 million euros.
With the funds received from the application round, together with state co-financing, up to 90 kilometers of the Rail Baltic main route will be built in Estonia. The railway embankment will be built on several sections of the main route in Harju County, including the Soodevahe-Kangru, Kangru-Saku, Saku–Harju/Rapla border sections, and in Rapla County on the Harju/Rapla border – Loone, Loone – Hagudi, Hagudi – Alu, Alu–Kärpla and Kärpla–Selja sections.
In addition to the construction work on the main route of the RB railway, CEF support has financed design, land acquisition and various studies.
Revenue from trading in European Union greenhouse gas emission allowances (EU ETS or CO2 funds)
The European Union Emissions Trading System (EU ETS) is one of the main climate policy instruments aimed at reducing greenhouse gas emissions. Funds allocated for the development of the transport sector are used to develop environmentally friendly transport infrastructure, increase the share of rail transport and reduce greenhouse gas emissions from the transport sector. 584,8 million euros have been allocated from CO₂ funds for the implementation of the Rail Baltica project, and an additional 51 million euros for the construction of a low-emission train maintenance depot in Soodevahe.
The funding will be used to implement several activities that are important to the Rail Baltica project. These include the design and construction of the main route, the establishment of infrastructure maintenance and energy supply systems, the construction of various facilities and traffic junctions, the implementation of owner supervision, and the financing of central project management and development activities.
The most important activities supported include the design and construction of the Soodevahe–Muuga section, the establishment of the Rail Baltica infrastructure maintenance centre, the planning, design and construction of the railway infrastructure on the Selja-Tootsi section, the Ülemiste–Pärnu and Pärnu–Latvian border sections, and the implementation of fast-track projects. Support will also be provided for the construction of energy connections and electricity supply, the connection of the Selja substation, the acquisition of necessary land, and the activities of RB Rail AS. In addition, CO2 funds will be used to ensure national co-financing of projects financed from the CEF.
As an important part of the project, a new low-emission train maintenance depot will be built in the Soodevahe area, ensuring the efficient maintenance and operation of Rail Baltica and other modern trains. This will contribute to the introduction and development of more environmentally friendly rail transport in Estonia.
The Rail Baltica project is important for implementing the green transition of the Estonian transport sector. The construction of a modern international railway connection will improve the possibilities for both passenger and freight transport, increase the competitiveness of rail transport and reduce dependence on road transport. As a result, the prerequisites will be created for a permanent reduction in greenhouse gas emissions from the transport sector and the development of a more sustainable transport system.
European Cohesion Fund funding
The aim of the project is to build Rail Baltica Tallinn Ülemiste Passenger Terminal Phase II, Pärnu International Passenger Terminal Phase I, and local railway stops.
Summary
The project will build Rail Baltica Tallinn and Pärnu passenger terminals and local stops, along with the infrastructure and buildings necessary for their safe and efficient use.
Ülemiste Terminal will become a modern transport hub that connects different modes of transport and offers passengers a comfortable, energy-efficient and user-friendly environment. The winning entry in the terminal's architectural competition, "Light Stream", was designed by Zaha Hadid Architects and Esplan. The terminal was named Linda in the public competition.
The Pärnu International Passenger Terminal will be built in the Papiniidu area. The terminal will include waiting areas, service areas, a café, and connections to bus traffic, bicycle parking, taxis, cars, and pedestrian paths.
Rail Baltica local stops will improve access to international rail and support regional development by providing fast and efficient connections to larger centers. A total of 12 local stops are planned in Estonia.
