ESTONIAN RAILWAY INFRASTRUCTURE

Promoter – Financial Intermediary

EESTI RAUDTEE AS

Location

• Estonia

Description

The project will finance the renewal and upgrade of railway infrastructure in Estonia. In details, it consists of three components: - electrification (new and upgrade) of Tallinn-Muuga section; - renewal of railway infrastructure, track and buildings; - the development of a Wagon Management System. The scope will be confirmed during the appraisal.

Additionality and Impact

The Project is located in a Cohesion region and part of the project forms part of the North Sea - Baltic Core TEN-T corridor and helps to fulfil EU public policy goals such as the Regional Policy of the European Union (EU) as well as the Trans-European Transport Network (TEN-T) policy. The Project supports the shift of passengers and freight traffic to rail and addresses market failures by minimising a number of transport externalities, such as the harm to humans in terms of accidents and loss of life, or environmental externalities like noise, pollution and CO2 emissions. It will bring benefits to passengers and ensure sustainable transportation of freight.

The EIB financing will provide the Borrower with flexible conditions and will accelerate the full financing and implementation of the Project, providing co-financing with the EU and national grants.

Objectives

The aim is to increase the quality of rail services in the country and promote rail travel. Consequently, it should enhance sustainable transport, in line with EU objectives. Being located in a convergence region and facilitating mobility, the project also promotes regional development.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 45 million

Total cost (Approximate amount)

EUR 127 million

Environmental aspects

According to Promoter information, none of the components of this projects require an Environmental Impact Assessment (EIA) in accordance with the Directive 2011/92/EU as amended by Directive 2014/52/EU. This will be verified during appraisal. All else equal, the project is expected to have a positive environmental impact by helping the railways to maintain modal share in the market segments that are most appropriately met by rail. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation, pollution prevention due to electrification and thus replacing diesel traction with electric one.

Procurement

The Bank will require the Promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 29/07/2025