We signed a record-volume Rail Baltica contract

On Friday, 16 May, the Rail Baltica project in Estonia passed a new milestone: contracts with two international consortia were signed for building two key segments of the mainline in Estonia. These are the largest infrastructure construction contracts in Estonian history.

Merko is a participant in the alliance team that will build the Rail Baltica mainline superstructure on the segment between the Ülemiste passenger terminal and Pärnu and the substructure on the Tootsi-Pärnu segment. The contract encompasses a rail line with a total length of 142 km. The work will be performed in alliance contract format where the railway will be built in close cooperation between the contracting authority, builder and engineers.

After the signing of the contracts, the construction of the entire Estonian part of the Rail Baltica mainline is now under contract, and the project is making steady progress toward the goal of opening high-speed train traffic between Tallinn and Warsaw in 2030. In addition, the partnership with top international companies will bring world-class engineering knowledge to Estonia and open new opportunities for local companies, Rail Baltic Estonia announced.

“These contracts mark a new stage in the implementation of Rail Baltica – not the start of a new stage but a breakthrough in the whole construction process. Now the entire Estonian part of the passenger transport mainline is covered by contracts and is under construction. This is the moment that the vision that was on paper becomes a continuous construction line,” said chairman of the management board of Rail Baltic Estonia, Anvar Salomets.

Estonian Minister of Infrastructure Kuldar Leis said: “I am pleased that interest in the procurement was high and strong consortia with international experience made it to the final selection. That reaffirms that Rail Baltica is an attractive and strategically important project for world-leading infrastructure companies. Rail Baltica is more than just a railway line but an important investment in Estonian security and economy, strengthening our connection with the rest of Europe. Our aim is for Rail Baltica to be completed by the agreed deadline – the signing of today’s contracts is a key milestone on this road.”

To build the rail line from Ülemiste to Pärnu, Rail Baltic Estonia entered into a design-build contract based on the alliance model with lead partner GRK Eesti along with GRK Suomi, Merko Ehitus Eesti, NGE Contracting, Sweco Finland, Sweco Sverige and TSO.

The contracting authority estimates the total cost of the design and construction at 394 million euros, plus VAT. Under the principle of alliance contracting, the timetable and actual cost will be determined in cooperation between the parties during the development and execution phase of the contract. Merko’s estimated share of the construction works will be 20%.

“I’m extremely grateful that Rail Baltic Estonia chose us as the construction partner for the works on the segment from Ülemiste to Pärnu. It is without a doubt the largest construction project in Estonian history. Our international alliance team has strong local and international design and construction competence to meet all of technical and environmental challenges that the project will present. We look forward to working with the contracting authority in the alliance and successful construction of the railway to offer a sustainable transport solution both within Estonia and between Estonia and central Europe. The new railway line will significantly transform the future of the Estonian transport sector,” said Tiit Roben, the CEO of GRK Eesti, the consortium’s lead partner.

The signing of the contract will now be followed by a year-long development phase during which the alliance will put together a detailed plan, obtain the necessary resources, specify technical solutions and prepare construction schedules. After the development phase is completed, active construction will get underway.

Signing of the Alliance Agreement 16.05.2025 a. in the Knighthood building. Photo: Rail Baltic Estonia, Karli Saul.

Rail Baltica is a project co-funded by the European Union to build a modern and environmentally friendly high-speed railway linking the Baltic States with the rest of Europe. The Rail Baltica infrastructure will allow passengers to travel from Tallinn to Pärnu in 40 minutes and to Riga in 2 hours 20 minutes. The Rail Baltica line will be equipped with local stops and regional trains. Rail Baltic Estonia is the developer of the Rail Baltica in Estonia and will in the future be the infrastructure manager for the Estonian part of the line.