📋 Tender Overview
On Tuesday, July 7, the Cabinet of Ministers got acquainted with the informative report prepared by the Ministry of Transport (MoT) On making investments in the construction of the substation Iecava RB (Iecava II) belonging to AS Augstsprieguma tikls AS, in which it is planned to direct the funding granted by the European Union to the construction of a new connection of the joint-stock company Augstsprieguma tikls (AST). This decision marks an important stage in the implementation of the Rail Baltica project in Latvia, starting the development of the energy supply infrastructure necessary for the operation of the project in cooperation with AST. As high-speed electric trains will run along the new European standard width (1435 mm) railway line, the construction of a new high-voltage substation Iecava RB (Iecava II) is planned in Iecava Parish to ensure reliable electricity supply. The construction of the substation is technically critically important a component required to provide the traction power required in the conversion of 110kV AC to 2x25kV AC. It will ensure a stable and powerful electricity supply to the southern section of the Rail Baltica main line, creating prerequisites for safe, efficient and environmentally friendly railway traffic in the future. In accordance with the agreement concluded on March 13, 2025 between RB Rail AS, SM and AST on the organization of a new electricity transmission system connection object Iecava RB, AST conducted a procurement procedure with negotiations in two rounds and procurement concluded on April 22, 2026, confirming the most economically advantageous offer. The scope of the procurement includes the construction of a new substation Iecava II, which is planned to be completed by the end of 2028, providing the necessary power for Rail Balticas traction power needs, as well as the reconstruction of two existing 110kV overhead line crossings with the Rail Baltica track, which is planned to be completed by September 2027. The construction of the new substation has been granted funding from the Connecting Europe Facility (CEIF) and co-financing from the state budget in accordance with the financing agreement concluded in 2024 (CEF10C). In order to ensure the compliance of the project implementation with the conditions of the financing agreement, the joint venture RB Rail AS has prepared amendments to the financing agreement, which will be submitted for approval to the European Climate, Infrastructure and Environment Executive Agency (CINEA) in the near future. Thus, it will be ensured that the 3.37 million EUR funding allocated to the MoU, of which 2.87 million EUR (85%) of the EISI funding and 506 thousand EUR (15%) of the state budget funding, can be used for the construction of a new AST connection, determining the ownership of the construction in accordance with Article 10 of the Electricity Market Law. At the same time, the necessary financing solution is provided by the improved legal regulation. On July 1 of this year, amendments to the Law on the Implementation of the Rail Baltica project came into force, which allows investments in the property of another person in the cases provided for in the regulatory acts and in accordance with the established procedures, if it is necessary to build the objects necessary to ensure the functionality of the Rail Baltica project.
