The Trans-European Transport Network (TEN-T) "Rail Baltica" project could generate €6 for every euro invested, with a considerable impact on jobs, air quality and, at a more general level, on the economy. These claims were made in a study ordered by the European Commission and presented during the Rail Baltica Global Forum, on Monday 24 April in Riga.
The director-general of DG Mobility and Transport, Henrik Hololei, was pleased that, “the new cost-benefits analysis clearly confirms the viability and value of Rail Baltica”. He also emphasised that Baltic member states should take full advantage of it.
The economy, employment and environment would largely benefit from the European project, judging by the cost benefit analysis carried out by Ernst & Young consultants and the summary of it that has been consulted by EUROPE.
The project will cost around €5.8 billion (€1.346 billion in Estonia, with national co-financing of €268 million; €1.968 billion in Latvia, with co-financing of €393 million; €2.473 billion in Lithuania, with co-financing of €493 million) with the social economic impact estimated at €16.2 billion. On average, according to the study, the long-term impact will be worth €6 in the global economy for every euro invested in the three member states.
The study therefore forecasts around 13,000 full-time jobs in the three member states and more than 24,000 indirect jobs during the construction phase.
The analysis also asserts that the project will create the conditions for saving around 400 lives and reducing CO2 emissions and air pollution. According to the calculations made by the authors of the report, savings of around €6.3 billion will be made every year.
The authors of the report conclude that in this connection, the project is economically viable because the benefits for society considerably exceed the capital of the project and the operational spending.
It should be pointed out that the Rail Baltica railway route is one of the priority projects in the EU’s Trans-European Transport Network (TEN-T), which connects Finland, Estonia, Latvia, Lithuania and Poland. The Baltic route is expected to be finished in 2025. Its connection with Warsaw is expected to be finished in 2030. In this regard, an under the sea tunnel project between Estonia and Finland is being examined (see EUROPE 11462). (Original version in French by Pascal Hansens)