Rail Baltica

Session: 15th Riigikogu, 3rd sitting, information briefing

Date: 2024-01-17 15:53

Participating Politicians:

Total Speeches: 5

Membership: 15

Agenda Duration: 3m

AI Summaries: 5/5 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

The 11th question of the information hour focused on the Rail Baltic project. MP Aleksandr Tšaplõgin asked Prime Minister Kaja Kallas about the project's financial viability, referring to statements made by Anvar Salomets, head of Rail Baltic Estonia, that the project is not and will never be financially profitable and requires annual state support. Tšaplõgin wanted to know how large Rail Baltic's annual cost to the taxpayer would be.

In her response, Prime Minister Kaja Kallas explained that infrastructure projects financed by public funds, such as Rail Baltic, are not expected to achieve direct financial profitability. She emphasized the importance of the socio-economic benefit to society, which manifests as reduced travel time, improved traffic safety, and increased use of a more environmentally friendly mode of transport. Kallas referred to a 2017 Ernst & Young analysis which confirmed that the socio-economic benefit outweighs the project costs. Additionally, she highlighted the creation of a crucial north-south railway connection and the assurance of military mobility in the context of the current security policy situation. The Prime Minister also explained that, for railways, the expectation is that usage fees will cover maintenance costs, which differs from the financing model for highways.

Decisions Made 1
Collective Decision

No decisions were made

Esimees Lauri Hussar
15:53:10
AI Summary

Chairman Lauri Hussar moves on to the 11th item on the agenda, where Aleksandr Tšaplõgin will pose a question to Prime Minister Kaja Kallas regarding Rail Baltic.

Aleksandr Tšaplõgin
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:53:23
AI Summary

Aleksandr Tšaplõgin asks why the unprofitable Rail Baltic project is necessary, considering that Anvar Salomets has admitted it is not financially viable and taxpayers must pay for the railway's operation every year, and whether anyone knows what its annual cost is to the taxpayers.

Esimees Lauri Hussar
15:53:57
AI Summary

He/She addresses Mrs. Prime Minister with a request.

Peaminister Kaja Kallas
15:53:58
AI Summary

Prime Minister Kaja Kallas emphasizes that the success of infrastructure projects financed by public funds is not measured by financial profitability, but rather through societal benefits, such as reduced travel time, fewer traffic accidents, and less environmental damage. Furthermore, in the case of Rail Baltic, this includes broader economic and security benefits, along with the post-construction added value, tax revenue, and labor force impact. She also noted that different modes of transport employ different solutions for covering costs and usage—for instance, a usage fee applies to rail, but not to roads.

Esimees Lauri Hussar
15:57:06
AI Summary

The information session has ended, and the plenary session of the Riigikogu, which starts at two o'clock, is next on the agenda.