Spanish Consortium Seeks Over €14 Million from Latvia Over Rail Baltica Contract Termination
A Spanish consortium has filed for international arbitration, demanding more than €14 million from Latvia in connection with the termination of the Rail Baltica design contract for the Riga section.
A consortium of Spanish companies, comprising IDOM and INECO, has initiated arbitration proceedings at the International Chamber of Commerce in Stockholm, seeking over €14 million in compensation from Latvia. The dispute stems from the termination of a contract for the design and supervision of the Rail Baltica main line through Riga, which was cancelled in October 2023 by the joint venture RB Rail in coordination with the Ministry of Transport.
The consortium submitted its claim in February 2026, arguing that the termination was unjustified. Latvia, represented by RB Rail and the Ministry, contends that the contract was lawfully terminated due to prolonged delays and systematic deficiencies by the consortium. The Ministry has also filed a counterclaim seeking €3.37 million in contractual penalties.
After the contract was terminated, a new tender was launched but failed to attract suitable bids. The only offer received was for €39 million, far exceeding the planned budget of €8 million. Meanwhile, in December 2024, the government approved priority sections of Rail Baltica for construction, deferring the Riga segment to a second phase.
RB Rail stated that all costs related to the arbitration will not be covered by EU funding. Further details remain confidential to protect Latvia’s legal interests. The total cost of Rail Baltica’s first phase in the Baltics is estimated at €14.3 billion, with Latvia’s share ranging from €5.5 to €6 billion.
