On Friday, 16 May this year, in Tallinn, a contract was officially signed between OÜ Rail Baltic Estonia and the consortium responsible for the design and construction of the section of the Rail Baltica railway line running from Pärnu to the Latvian border. Budimex SA, which is part of the so-called Construction Group, has a 40% share in the implementation of construction works. The expected value of the contract is EUR 332 million (approx. PLN 1.4 billion), while the total value of the construction works is expected to amount to approximately EUR 313.7 million (approx. PLN 1.33 billion).
The investment, which will be implemented in Estonia, is part of the cross-border Rail Baltica project, which involves the construction of a modern railway network connecting Warsaw, Kaunas, Riga, Tallinn and Helsinki. In March this year, as a result of a tender procedure, the offer of a consortium consisting of Bouygues Travaux Publics, KMG Infra OÜ and Budimex SA, which will jointly carry out the construction works, as well as Ingérop Conseil et Ingénierie and WSP Finland Oy, which will be responsible for the design, was selected.
The signed contract concerns the construction of one of the two fragments of the Rail Baltica line planned in Estonia. It concerns the comprehensive implementation of the design and construction of the railway line on the Pärnu-Ikla section. As part of the project, more than 58 kilometers of railway line with accompanying infrastructure are to be built.
” Estonia is one of the most dynamically developing Baltic markets in terms of infrastructure. The construction of the Rail Baltica line is not only to modernize local rail transport, but above all to build a bridge between the Baltic States and the central and western parts of Europe. It is important not only for mobility or trade, but above all for security. We are glad that as Budimex SA we have the opportunity to implement as many as two projects as part of this historic investment – says Artur Popko, President of the Management Board of Budimex SA. – The signing of the contract is the first milestone. We are facing an intensive period of work, which, in accordance with the order formula, we will carry out “side by side” with the Investor. It will be a long-term and technically complex project. For us as a company, it is above all a great opportunity to gain trust in another Baltic market and experience in the implementation of high-speed rail, which we hope to use in Poland soon – adds President Popko.
The contract will be implemented in the unique “Alliance” formula, assuming close cooperation between the contracting authority and contractors at every stage of the investment. This approach is aimed at mitigating risks and sharing responsibility between all parties.
The conclusion of the agreement opens the investment process. In the first place, a work schedule is to be created, specifying the date of completion of the section, and preparations are to be started for the initiation of design works by the Contracting Authority and consortium members responsible for this part of the order. The planned completion date of the construction works is the end of 2030.
The contract in Estonia is another investment with the participation of Budimex SA being developed as part of the European Rail Baltica project. As a member of the E.R.B. Rail consortium, the company is also implementing 230 kilometers of the Rail Baltica railway line in Latvia along with 175 engineering structures and 11 ecological crossings. At the end of last year, preparatory works began along with the launch of the construction facilities
in the village of Iecava. Currently, the first line works are starting.
Budimex SA, being the leader of the domestic market, continues its foreign expansion. In total, it is already implementing two orders in the Baltic States, and is also a contractor and subcontractor for infrastructure projects in Germany, the Czech Republic and Slovakia. The value of the Budimex Group’s order book on foreign markets at the end of 2024 reached PLN 1.2 billion.
