Rail Baltica Cable Protection & Lithuania Contracts: €1.5B Boost

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Introduction

Rail Baltica has finalized its initial framework agreements for the consolidated supply of cable protection materials, a step forward in the procurement strategy for the cross-border high-speed railway project across the Baltic states. The agreements assign the provision of multi-ducts to Höhle and cable-ducts to Pipelife Eesti.

Procurement Agreements

Framework Agreements

The agreements, currently active, assign the provision of multi-ducts to Höhle and cable-ducts to Pipelife Eesti, both located in Estonia. These materials are essential for protecting power and communication cables along the railway, shielding them from damage and environmental factors while also supporting maintenance and system upgrades. The procurement of cable protection materials, initiated in 2021, is managed by RB Rail. This project is a collaboration with the three national implementing bodies: Rail Baltic Estonia, SIA Eiropas Dzelzceļa Līnijas, and LTG Infra.

Financial Aspects and Duration

These seven-year framework agreements aim to ensure competitive pricing and transparent supply terms, in accordance with EU funding regulations. The total projected value of these agreements is €1.13bn ($1.31bn), representing the maximum estimated contract value for superstructure materials required throughout Rail Baltica’s construction. Currently, other procurement contracts are under review by the appropriate national authorities.

Future Procurement Plans

Upcoming Contracts

Additional framework agreements will cover other essential construction materials, including rails, sleepers with fastening systems and under sleeper pads, ballast, turnouts, and rail expansion joints. Efforts are ongoing to incorporate regional manufacturers into the supply chain, fostering local industry involvement.

Construction Contracts in Lithuania

Construction Expansion

Recently, LTG Infra, a subsidiary of the LTG Group, signed two construction contracts for the Rail Baltica project, extending active construction in Lithuania to 114km. The combined contract value for these contracts is €375.8m ($437m), including VAT.

Conclusion

Rail Baltica has initiated framework agreements for cable protection materials with Höhle and Pipelife Eesti, with a total value of €1.13bn ($1.31bn). LTG Infra has also signed construction contracts in Lithuania valued at €375.8m ($437m), expanding active construction to 114km. Further agreements are planned for other construction materials.

Company Summary

Höhle: A company that will supply multi-ducts for the Rail Baltica project.

Pipelife Eesti: A company that will supply cable-ducts for the Rail Baltica project.

RB Rail: The entity managing the procurement of cable protection materials for the Rail Baltica project.

Rail Baltic Estonia: One of the national implementing bodies for the Rail Baltica project.

SIA Eiropas Dzelzceļa Līnijas: One of the national implementing bodies for the Rail Baltica project.

LTG Infra: One of the national implementing bodies for the Rail Baltica project and a subsidiary of the LTG Group.

LTG Group: The parent company of LTG Infra.

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