Rail Baltica Project Advances in Lithuania with New EU Funding and Major Construction Contracts

The Rail Baltica project, aimed at constructing a high-speed 250km/h standard-gauge railway linking the Baltic states with Poland, has reached another key milestone in Lithuania. Lithuania’s infrastructure manager, LTG Infra, has signed two significant construction contracts and secured additional funding from the European Union (EU) to support the project’s expansion.

Construction Contracts to Extend Rail Baltica in Lithuania

LTG Infra has awarded contracts totaling €375.8 million for the construction of 114 kilometers of new rail infrastructure in Lithuania. The contracts were granted to two companies: Kauno Tiltai and Hisk. Kauno Tiltai will oversee the construction of a 24.4-kilometer railway embankment and related engineering structures between Ramygala and Berčiūnai. This contract, valued at €248.9 million, includes the building of eight bridges, three viaducts, two animal crossings, and a green bridge, alongside the reconstruction of four public roads.

The second contract, awarded to Hisk, will involve 12.3 kilometers of embankment and engineering works between Berčiūnai and Joniškėlis, with a value of €126.9 million. This contract includes three viaducts, one bridge, 19 culverts, animal crossings, and more than one kilometer of noise barriers. Notably, this is the third contract Hisk has received for work on the Rail Baltica line in Lithuania.

EU Support for Rail Baltica Expansion

In addition to the new construction contracts, the EU has reaffirmed its commitment to supporting the Rail Baltica project. The European Climate, Infrastructure, and Environment Executive Agency (Cinea) and project stakeholders met in Vilnius on October 21-22 to review the progress of the project. During this meeting, the central coordinator, RB Rail, signed a new Connecting Europe Facility (CEF) grant agreement, securing €295.5 million in EU funding.

This funding will be distributed across the Baltic countries, with €47.1 million allocated to Estonia, €153.5 million for Latvia, and €94.9 million to Lithuania. In Lithuania, this financial support will help to advance construction in the Kaunas Urban Node, which includes the construction of overpasses, railway crossings, technical design work, and land acquisition for the section from Kaunas to the Polish border.

The Strategic Importance of Rail Baltica

The Rail Baltica project holds significant strategic importance for the Baltic region, enhancing regional connectivity and security. The project is designed to link the Baltic states to the wider European high-speed rail network, improving transportation and economic ties between these countries and the rest of Europe. Lithuania’s Transport Minister, Juras Taminskas, underscored the importance of this project for the region’s future infrastructure development.

LTG Group CEO, Egidijus Lazauskas, highlighted the strong momentum of the Rail Baltica project in Lithuania, noting that more than €800 million in contracts have been signed in 2025 alone. This marks a substantial increase in investment, with funding largely coming from European sources. The CEO also emphasized the increased pace of work, particularly between Kaunas and Panevėžys, where construction activities will intensify in the coming years.

The Future of Rail Baltica

With the successful awarding of these contracts and additional EU funding secured, the Rail Baltica project is progressing towards its completion, which is expected to significantly improve rail travel across the Baltic region. As construction moves forward, the project will continue to support local economies, create jobs, and enhance the quality of life for residents by offering a fast, efficient, and sustainable transport solution.

The Rail Baltica line is slated to be a key component of the European Union’s efforts to improve cross-border transport networks, and its completion will mark a major milestone for both Lithuania and its neighbors. The project is not only crucial for improving regional connectivity but also for enhancing the competitiveness of the Baltic states in the global market.

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