Another step in Budimex’s expansion. The consortium with the Company’s participation wins a prestigious contract in Estonia with an estimated value of EUR 332 million.

The consortium, which includes Budimex, has won the tender for the design and construction of the Rail Baltica main line in Estonia, on the Pärnu – Latvian border section. The total value of the contract is approx. EUR 332 million (approx. PLN 1.4 billion).

In addition to Budimex, the consortium includes Bouygues Travaux Publics (France) and KMG Infra OÜ (a local company from Estonia), which are the so-called Construction Group, and Ingérop Conseil et Ingénierie (France) and WSP Finland Oy (Finland), which are part of the so-called Project Group, responsible for the preparation of the investment project. The contracting authority is OÜ Rail Baltic Estonia. All consortium members had to demonstrate high standards in terms of technical and financial capabilities, as well as experience.

” This is an important day for us. On 11 March, during the 2024 results conference, we informed the market that we expect the results of the tender for the next section of Rail Baltica in Estonia in 2 months. Meanwhile, we can already confirm today that we have another milestone in our development strategy on foreign markets,” says Artur Popko, President of the Management Board of Budimex SA. – Winning the tender for the construction of the Estonian section of Rail Baltica is the result of the huge effort that our team has put into the development of this offer, but also of the work we have done as an organization to prepare for the implementation of such strategic orders in the railway segment, also on the European market – added the President. – We want to be the leader of the construction industry in  Central and Eastern Europe and the foundation of the Railways and the Railway. on which we are building this position, has just become even stronger ,” emphasizes Artur Popko, President of the Management Board of Budimex SA.

The contract covers the construction of 58.08 km of railway line and will be implemented in the “Alliance” formula. It is divided into three phases: design, construction and liability for defects, and these phases will be the subject of separate orders. Budimex’s share in the Construction Group, which is to carry out the scope covering only construction works, is 40 percent.

The entire investment in the construction of the main Rail Baltica line in Estonia is divided into 2 sections, for which separate contracts are to be signed with the Ordering Party. Today’s information provided by Budimex on the selection of the consortium’s offer concerns the implementation of section 2 [Alliance number 2] covering part of the investment from Pärnu-Ikla to the border with Latvia. The company is currently waiting for the contract to be signed. Its estimated value is 332 million euros.

According to estimates, the contract for the construction of the next section of Rail Baltica will ultimately increase the Budimex Group’s portfolio by up to PLN 0.5 billion, which at its current level would amount to PLN 18.3 billion. At the end of 2024, the Budimex Group’s order book reached a record value of PLN 17.8 billion (51% y/y).

The planned completion date of construction works in Estonia is the end of 2030. The project aims to develop modern railway infrastructure that will allow trains to reach speeds of up to 249 km/h. The investment is co-financed by the European Union and the Estonian state budget.

The “Alliance” formula is a model of project implementation based on close cooperation between the contracting authority and contractors, where the parties share responsibility, risks and benefits. The process is divided into stages, and each phase is approved separately, giving you flexibility and control over your investment. Thanks to this approach, the risk of disputes is minimized, and the project can be implemented more effectively and transparently.