EU – Baltic States, Financial Services, Latvia, Legislation, Railways, Transport

The designs of the project and operational study on the railroad section going through Latvia is to receive EUR 1.05 million this year and EUR 3.87 million in 2015, from the undistributed funding for projects and events co-funded by the European Union and other foreign aid.

The Transport Ministry explains that the European Commission confirmed on October 14 last year the the project would be funded from the TEN-T budget, whereas the Transport Ministry has to provide Latvia's co-financing for the project.

The Transport Ministry also explains that Latvia's co-funding for the project needs to be allocated as soon as possible so the ministry could sign the necessary contracts and the project designs and the study could be implemented on schedule, which, according to the European Commission's rules, cannot be prolonged.

As reported, the Rail Baltica project deals with construction of a new 1435 millimeter standard-gauge railroad in the Baltic countries. The implementation of project could cost EUR 1.27 billion to Latvia and EUR 3.68 billion to the Baltic States altogether.

The European Commission could co-fund 85 percent of the project's costs. The request for funding will be submitted to the European Commission in 2015, so construction of the railroad could begin in 2016. Further funding for the project is to be provided as part of the next financial period that will begin in 2020.