We are advising Rail Baltic Estonia in compiling the procurement documents relating to the alliance procurement consultancy contract signed between Rail Baltic Estonia and joint bidders BrainTeam OÜ and Vision Oy. The agreement, which will serve as the basis for the procurement of large-scale Rail Baltica railway construction work, costs approximately EUR 1 million and lasts from signing until the completion of the construction works.
Most significant project of its kind in the Baltics during the last century
Rail Baltica is a significant project on the European scale, led by the multi-national joint venture of the Republics of Estonia, Latvia and Lithuania (RB Rail AS) and with an estimated budget of EUR 5,6 billion. The Baltic states finance the implementation of the project. They are co-funded by the European Union by up to 85% of the total eligible costs, particularly in the framework of the Connecting Europe Facility (CEF) funding instrument. Socio-economic benefits are valued at around EUR 16.2 billion, far exceeding the estimated target cost.
The project will integrate modern technologies and solutions to create a safe, environmentally friendly, fully electrified high-speed railway system and provide a rail connection between the Baltic capitals every two hours.
Demanding project schedule
The contract entails developing an Alliance procurement strategy and contract model for implementing multiple sections of railway infrastructure within Estonia. This includes the main line superstructure from Ülemiste to Tootsi, the sub and superstructure of the Tootsi-Pärnu main line, and the sub and superstructure of the Pärnu-Latvian border main line on the territory of the Republic of Estonia.
According to Anvar Salomets, the CEO of Rail Baltic Estonia, the Rail Baltica railway must be completed by 2030. The alliance procurement model enables the announcement of extensive procurement packages worth hundreds of millions of euros by the end of 2024, primarily focusing on constructing railway superstructures and partly on railway substructures.
Alliance procurements are a new innovation in Estonia, and are based on the success of the model in Finland. The goal is to create a structure and culture for the project team that fosters cooperation and innovation to achieve the best solution for the project as a whole. Rail Baltic Estonia plans to conclude Alliance contracts during the first half of 2025.
Long-term cooperation
As part of the Rail Baltica project, our pan-Baltic team has previously advised RB Rail in drafting international treaties, infrastructure management agreements, and revisions to national laws needed to manage the Rail Baltica cross-border railway infrastructure. Our team of experts have also advised Rail Baltic Estonia in compiling the procurement documents relating to the construction of the Rail Baltica Ülemiste joint terminal and its surrounding area.
Our services and client team
As a result of the contract’s fulfilment, we will assist the client in preparing procurement documents (including procurement contracts) and advise the parties during the execution of construction contracts. We will advise on the preparation and conduct of procurement procedures and on the implementation of the Alliance contract model during the execution of the works until their acceptance.
Our team is led by our senior associates Mirjam Vichmann and Mario Sõrm and supported by partner Paul Künnap and associate Anu Liinsoo.
