The Latvian Ministry hid the true scale of the high cost of Rail Baltica

The commission also found out that already in its 2021 presentation, the Ministry of Transport showed that the Rail Baltica project would cost 3.5 billion euros. During several meetings, deputies stated that both the Minister of Transport and other officials already in 2019-20. were informed about the real increase in prices. The Board of RB Rail held a presentation on September 9, 2021, where it was recognized that the total costs of Latvia for the construction of Rail Baltica will amount to 5.3 billion euros without taking into account inflation.

Latvia’s planned expenditures for Rail Baltica have increased over the years from the initial 1.97 billion euros to 9.59 billion euros, the parliament’s press service indicated.

According to the commission members, during the implementation of the Rail Baltica project, the participation of the Ministry of Finance was insufficient, that is, risk management and cost control were not carried out until 2023: “None of the prime ministers monitored the Rail Baltica project – neither the timing nor behind the budget.”

Now the Ministry of Finance of Latvia has not agreed on the scenario for implementing the first stage of the Rail Baltica railway project proposed by the Ministry of Transport, putting forward more than 20 objections. The European Commission, for its part, stated that the project will not be stopped, so without significant government funding and the provision of money from other sources, it will be impossible to complete the Rail Baltica project, relying only on European funds.

In mid-June, Latvian Television’s De Facto program reported that the cost of the Latvian part of the project could rise to 9.6 billion euros if the entire project was implemented, but by breaking it into parts and building only one track, it could be 6.4 billion. The audit previously showed that the regional budget deficit for the project could reach 10-19 billion euros and that the project is years behind schedule. However, in October 2024, information appeared that the cost of the first stage of the Latvian section of the highway could be 5 billion, and not 6.4 billion, as previously assumed.

The parliamentary commission of inquiry came to the conclusion that the situation with Rail Baltica should be studied by the prosecutor’s office – and in particular, to evaluate the addition of large and expensive “additions” to it without the knowledge of the Seimas of Latvia.