A Lithuanian court has once again blocked state-owned LTG Infra from finalizing a €100 million contract with Fima and AŽD Praha for signalling modernization on the Kaunas–Polish border section of the Rail Baltica railway line. The decision, prompted by a legal challenge from Alstom Baltics and Belam-Riga, introduces further delays to a project Lithuanian infrastructure managers state must be completed by the end of 2027.
The Vilnius Regional Court rejected LTG Infra’s request to lift interim measures on January 6th. These measures, initially imposed in September of last year and upheld by the Court of Appeal in October, prevent the contract from being signed while the tender dispute continues. Court representative Lina Nemeikaitė explained to the Baltic News Service that LTG Infra “did not substantiate that the circumstances have changed” to warrant lifting the ban, and that the measures remain proportional and cost-effective.
Tender Dispute
The core of the dispute centers on a tender for signalling upgrades on the rail line between Kaunas and the Polish border, a key component of the European standard-gauge Rail Baltica corridor. LTG Infra announced Fima and AŽD Praha as the winning bidders in July. Alstom Baltics and Belam-Riga are contesting this decision, seeking to have it annulled and arguing that their own bid was improperly rejected after two years of negotiation due to a perceived lack of legal justification.
The companies also challenged LTG Infra’s decision last September to withhold the AŽD and Fima offer from other bidders. The Vilnius Regional Court consolidated both cases in November, with a final ruling expected on January 14th. LTG Infra maintains that the project is a critical part of the government’s strategic portfolio, with the first phase slated for completion by 2030.
According to Fima and AŽD Praha, the continued delay in signing and executing the contract could jeopardize the project’s timely completion. Other Rail Baltica contracts are proceeding, including a €38.3 million design contract awarded in August to Deutsche Bahn Engineering & Consulting, and a €1.77 billion electrification contract awarded to a Spanish consortium. Additionally, LTG Infra has launched a new tender for design services on the section from Panevėžys to the Lithuanian–Latvian border.
Frequently Asked Questions
What is Rail Baltica?
Rail Baltica is a European standard-gauge railway line planned to connect Estonia, Latvia, and Lithuania with Poland and, through it, the rest of Europe.
Why is this contract important?
This contract concerns signalling modernization on a key section of the Rail Baltica line, between Kaunas and the Polish border, and is considered essential for the project’s completion by the end of 2027, according to LTG Infra.
What happens next?
A decision on the legal dispute is due to be announced on January 14th. Depending on the outcome, the court’s ban on signing the contract could be lifted, allowing work to proceed, or it could be maintained, potentially leading to further delays and legal challenges.
How might these ongoing legal battles affect the overall progress and cost of the Rail Baltica project?
