Baltic ministries responsible for Rail Baltica project will work together with the Directorate-General for Structural Reform Support of the European Commission (DG Reform) and Technical Support Instrument (TSI) and compose a unified approach to a more efficient implementation of Rail Baltica project and management of railway infrastructure, as reported by representatives of Latvia Ministry of Transport.
The project will be implemented by Ernst&Young Advisory SAS (EY), chosen as a result of DG Reform’s public procurement procedure.
On October 25, the Ministry of Transport held an opening meeting of this new project. Parties participating in the meeting discussed the objectives of the project, results and methodology to employ to find a single approach to management of Rail Baltica project’s railway infrastructure and regulations. The general objective is lowering the obstacles related to the administrative differences in countries participating in Rail Baltica project and which could potentially slow or otherwise impact successful cross-border use of the railway line.
The three priority axes of the project will be the issues of unified cross-border public service obligations (PSOs), the development of an effective regulatory framework and a functional institutional framework for the Rail Baltica infrastructure management model, development of a financing model for Rail Baltica infrastructure objects, such as rolling stock depots, freight terminals and passenger stations, the costs of which are not eligible for funding from the Connecting Europe Facility (CEF).
The project will examine the current situation in order to develop guidelines for jointly ordered cross-border services in accordance with the Regulation of the European Parliament and of the Council and the amendments adopted in 2016.
Until now Latvia, Estonia and Lithuania have used their own approaches within their own territories, the ministry comments.
In turn, in order to make efficient use of rolling stock and infrastructure capacity by providing cross-border connections, regional services along the Rail Baltica railway line will not be restricted within national borders. The Ministry of Transport explains that it is necessary to carry out a market analysis and, on this basis, to define the PSO model, thus maximizing the opportunities provided by the Rail Baltica infrastructure.
The project will also prepare recommendations for the improvement of the regulatory framework to ensure the management of Rail Baltica according to the principles of a single infrastructure, while ensuring that all applicable European Union (EU) legislation is complied with.
Although the owner of the Rail Baltica railway infrastructure in Estonia, Latvia and Lithuania will be the respective country in which the infrastructure is located, the aim is to operate it according to common principles and conditions, explains the representatives of the ministry, pointing out that it is essential to synchronise national and cross-border aspects of the use of Rail Baltica in the operating model of infrastructure management – safety management, traffic management, capacity allocation, charging principles and other related aspects.
The project will also analyze additional funding attraction solutions at European and national level from public and private funds to cover the construction of Rail Baltica railway infrastructure facilities, the ministry’s representatives say. The ministry explains that CEF funding with an aid intensity of up to 85% is granted for directly eligible costs – mainly for railway body and substructure works, as well as for the installation of railway systems. In contrast, other infrastructure objects related to the implementation of the Rail Baltica project are considered as indirect eligible costs of the project for which funding is not granted.
The parties agreed that regular meetings will be organised for the effective management of the project. The Baltic Ministries of Transport also undertook to cooperate with the consultant EY and to provide all the necessary data and information for the implementation of the project.
The EU Technical Support Instrument (TSI) is an EU programme that provides tailored technical expertise to EU member state authorities to design and implement structural reforms. At EU level, TSI is coordinated by DG Reform, while each EU member state has a coordinating body at national level.
According to the Rail Baltica project situation study report prepared by the Supreme Audit Institutions of the Baltic States, there is currently no clarity about the operation and management model of the Rail Baltica railway line. (BNN)