Rail Baltica Electrification: €1.77B Contract, Baltic States

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Introduction

On September 16, 2025, Rail Baltica signed a €1.77 billion contract in Vilnius, Lithuania, for the design and construction of its electrification subsystem. The contract was awarded to the joint venture COBELEC Rail Baltica and aims to electrify 870 km of railway and 2,403 km of tracks across Estonia, Latvia, and Lithuania.

Contract Details

The contract, valued at €1.77 billion ($2.07 billion), covers the full deployment of the Rail Baltica Energy (ENE) subsystem. The initial phase is budgeted at €949 million and is scheduled for completion by 2030. COBELEC Rail Baltica, a joint venture of Spanish companies Cobra Instalaciones y Servicios and Elecnor Servicios y Proyectos, was awarded the contract following a procurement process initiated in May 2022. The contract signing followed the electronic signing on July 31, 2025, which marked the formal commencement of the project.

Project Scope and Technology

The project will electrify 870km of railway and 2,403km of tracks across Estonia, Latvia, and Lithuania. It is described as the largest railway electrification project in Europe. The electrification will implement Static Frequency Converter (SFC) technology combined with a 2x25kV system in a 50Hz framework. This will be supported by ten traction substations to enhance reliability, efficiency, and environmental performance.

Statements from Officials

Lithuania Transport and Communications Acting Minister Eugenijus Sabutis stated that Rail Baltica is an “economic and security link to the West” and highlighted the contract’s importance for integrating into the European railway network. Rail Baltic Estonia CEO Anvar Salomets noted the significance of electrification for the project’s starting point in Tallinn and Muuga, Estonia, connecting the Baltic region to Europe’s economy.

Ongoing Construction and Recent Contracts

Construction for Rail Baltica is currently underway across Estonia, Latvia, and Lithuania. In Estonia, over 100km of railway substructure work is ongoing, particularly at the Ulemiste Terminal. In Latvia, construction focuses on the southern section near Iecava, along with developments at the Riga Central Hub and Airport terminals. In Lithuania, the Kaunas–Panevezys section includes 77km of embankments and engineering structures, with plans to cover 114km by the end of 2025, including track-laying and a new bridge over the Neris River. By the end of 2025, 43% of the Rail Baltica mainline is expected to be construction-ready.

In the previous month, Rail Baltica signed a €38.31 million ($44.5 million) contract for design and supervision services on a 96km railway segment linking Poland and Lithuania. This contract involved RB Rail, LTG Infra, and DB Engineering & Consulting.

Conclusion

Rail Baltica has awarded a €1.77 billion contract to COBELEC Rail Baltica for the electrification subsystem. The project aims to electrify 870km of railway across the Baltic states and is expected to be completed in phases, with the first phase by 2030. Construction is ongoing across Estonia, Latvia, and Lithuania.

Company Summary

Rail Baltica: Rail Baltica is a railway infrastructure project aiming to connect the Baltic states (Estonia, Latvia, and Lithuania) to the European railway network.

COBELEC Rail Baltica: A joint venture comprising Spanish companies Cobra Instalaciones y Servicios and Elecnor Servicios y Proyectos.

Cobra Instalaciones y Servicios: A Spanish company involved in infrastructure projects.

Elecnor Servicios y Proyectos: A Spanish company involved in infrastructure projects.

RB Rail: Involved in the €38.31 million contract for design and supervision services on a 96km railway segment linking Poland and Lithuania.

LTG Infra: Involved in the €38.31 million contract for design and supervision services on a 96km railway segment linking Poland and Lithuania.

DB Engineering & Consulting: Involved in the €38.31 million contract for design and supervision services on a 96km railway segment linking Poland and Lithuania.

Technology

Static Frequency Converter (SFC): A technology used in the Rail Baltica electrification project.

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