Estonia, EU – Baltic States, Legislation, Railways, Transport

The main task of the Estonian holding company is to represent the interests of the Estonian state in the joint venture in developing the Rail Baltica project. It also aims to support the interests of the Estonian shareholder, among other things, in preparing the European Union funding application, design, construction, procurements and financing agreements prescribed in the shareholders agreement of the joint venture and in compiling the business plan for the project.

The Rail Baltica joint venture to be founded in the Republic of Latvia, is a joint venture whose principal activity is the railway design, construction, and international marketing, and it will presumably be created during September.

According to the Estonian, Latvian, Lithuanian joint venture foundation agreement, the founders of the project will make the first capital payments in the amount of EUR 650,000 per shareholder this year. The amount will be transferred from the Estonian state budget to the holding company, which, in turn, will make a contribution to the joint venture.

Rail Baltica is a railway line that should connect Estonia with the rest of Europe and neighbouring countries of Latvia and Lithuania. With the help of European Union funding, preparations continue for construction work that presumably starts in 2017-2018.