The economic and financial appraisal for phase 1 of

Abstract

Financial and economic analysis (Internal Rate of Return, Net Present Value, Benefit/Cost ratio) was carried out in order to compare the Rail Baltica project alternatives from the financial and economical points of view. The following revenue sources were considered: infrastructure usage charges paid by the operators; merging of the traffic from road network to the railway: reduction of the maintenance costs of the "Via Baltica" highway, reduction of the road traffic accidents; merging of the traffic from existing railway line to the new one: reduction of the maintenance and operation costs of the existing line, reduction of the accidents on existing line (e.g. on the level crossings). While considering as costs: capital investment costs, construction costs, land acquisition costs, infrastructure maintenance and operation costs.