Andris Kulbergs, chairman of the Latvian parliamentary investigative committee on the implementation of the Rail Baltica project, has proposed setting up a Baltic-wide oversight committee and jointly approaching the European Commission to request funding for the railway in the name of security. According to Kulbergs, under the existing funding model, the railway will not be completed by the current deadline.
During a meeting on November 18, Kulbergs discussed the Rail Baltica project and other issues with the Riigikogu’s State Budget Control Select Committee and Anti-Corruption Select Committee.
Kulbergs took part in the session via video link and presented the Latvian parliament’s report to the committees.
Urmas Reinsalu (Isamaa), chairman of the Riigikogu’s State Budget Control Select Committee, pointed out that in a joint report in summer, the auditors general of the three Baltic states had stated that the Rail Baltica project was in danger of not going ahead, as its estimated cost had risen several times in a period of seven years.
At the beginning of the session, Reinsalu noted that the State Budget Control Select Committee had previously tried to clarify the cost of Rail Baltica in next year’s budget, but had failed to do so even with the cooperation of Estonian Auditor General Janar Holm.
Estonian Minister of Climate Vladimir Svet (SDE) confirmed that Rail Baltica would take EUR 294 million from next year’s state budget.
“We need to focus on how we can get this railway on track in 2030, and our current plan allows us to do that. Of course, we have a whole series of difficult issues ahead of us, in terms of funding and procurement, as well as discussions with Brussels, which we will have with our Lithuanian and Latvian counterparts,” Svet said.
Auditor General Janar Holm also noted that the project had cost twice as much, not 70% as much as planned, as had previously been claimed by Anvar Salomets, chief executive officer at Rail Baltic Estonia.
“It is not known from which source the EUR 338 million will come in 2026-2027. This is unknown at the moment, and what will happen after four years of planning is also unknown for now. There are high hopes for the last part of the money from Europe, but those negotiations are still to come,” Holm said.
Andris Kulbergs then explained that the main flaw of the project was the conflicting governance structure, which lacked international oversight. He also said that it was difficult to take decisions and reach agreements between countries. Kulbergs additionally pointed out that the flow of goods from Russia had disappeared and the number of passengers had decreased.
He then stressed the need to set up a Baltic supra-national commission to oversee Rail Baltica.
Kulbergs also pointed out that, as the next Connecting Europe Facility (CEF) funding round would not take place until 2028, it would not be possible to receive EU funding until 2030. Kulbergs therefore proposed all three Baltic states go to Brussels and ask the EU to allocate money for the project under the pretext of the security threat from Russia.
He also said that all three Baltic countries should reach an agreement on a final budget, deadline and route for the project.
Anastassia Kovalenko-Kolvart (Center), chairwoman of the Riigikogu’s Anti-Corruption Select Committee, said she doubted that Rail Baltica would be completed on time. During the meeting, Kovalenko-Kolvart asked if a risk analysis had been conducted in the event that the project was not completed in 2030.
Keit Kasemets, secretary general of the Ministry of Climate, replied that the prime ministers of Latvia and Estonia had confirmed that the railway had to be completed until 2030 and that the ministry was working to that schedule.
Kovalenko-Kolvart pointed out that, in addition to the missing EUR 1.8 billion, the question of trains remained unresolved.
“We are told that trains will start running in 2031. But in order to make the procurement and to test them, it takes ten years. If this is only going to done next year, as minister Svet said, then we are already behind,” said Kovalenko-Kolvart. (ERR)