Eastern border to require €320 million

Development of Estonia’s eastern border, price of which was already adjusted up by €100 million in February, will require a further €60 million, putting the final sum at €250 million. Another €70 million will have to be spent on maintenance, the border project set to land on the government’s desk today reveals.

It is the third estimate for the border development. The project’s cost was estimated at €80 million a few years ago. News that the border will cost a hundred million euros more than planned released a storm of indignation in the media this February- writes postimees.ee

At the time, the Police and Border Guard Board (PPA) put the cost estimate at €188 million that caused Minister of the Interior Andres Anvelt to put on hold the procedure of appointing PPA Director General Elmar Vaher for a second term.

Price subject to change again

Anvelt and Vaher settled the communication error between the agencies; however, a State Real Estate Ltd. (RKAS) expert analysis set to reach the government today finds that the border development will end up costing more: €320 million. The latest estimate includes average price advance in the construction sector for the past five years at 7 percent.

But even that might not be the final figure. “The forecast might be uncontrollably changed by other major projects in the coming years, such as Rail Baltic and construction of national roads,” an internal document at the disposal of news agency BNS suggests. “Bigger expenses might also be caused by rising fuel and labor costs.”

RKAS finds that the effect of price advance is lower on the border project compared to buildings as mechanisms and filling make up a big part of total costs prices of which will likely not grow as quickly as those of buildings.

A simplified view of RKAS’ expert analysis suggests that if the border project was previously estimated to cost €25.4 million in 2019, it will actually cost €31.8 million.

By 2020, the difference would be more than €20 million etc., provided other projects do not hike construction prices even more. The final price of eastern border infrastructure also depends on other construction tenders.

With the forecast in mind, the Ministry of Internal Affairs will ask the government for an additional €179.3 million for the project. That is just €40 million short of Estonia’s total alcohol excise duty receipt for last year. The same money could be used to construct two four-lane sections of the Tallinn-Tartu highway between Kose and Ardu (€50 million) and two more between Kose and Võõbu (€38 million). Politicians have referred to the latter as Estonia’s project of the century in roadbuilding.

More than a million a month to maintain

However, completion of border infrastructure would not be the end of pressure on the state’s wallet. A modern border sports considerable maintenance costs: €15-16 million a year beginning in 2027.

The government has set aside a maintenance budget of €25.8 million until 2026. It is clearly too little for the next eight years which is why the ministry is also applying for an additional €44.2 million for maintenance before 2027.

All this comes to a total price tag of €320.3 million for the eastern border. Sources for covering development, service and maintenance costs only exist for €96.8 million today, BNS reports. That is around €220 million short of what the expert analysis estimates is needed.

Read more news of Tallinn on our site.

postimees.ee
Estonia’seasternborder
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
3 views in november
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Politics
More than half of all Estonian residents support as liberal an alcohol policy as possible or one with few restrictions (54% in all), while another third favour more stringent restrictions, according to the alcohol yearbook, titled "Market, consumption and damages of alcohol in Estonia," introduced at a National Institute for Health Development (NIHD) conference on Tuesday. According to a poll conducted by the Estonian Institute of Economic Research (EKI),...
Society
Trying to keep on top of the movements of the political parties in Estonia can be a bit like herding the proverbial cats at times, particularly now we're in election season. From an "anglophone"* perspective, there are plenty of parties — around nine in all, three in government, three in opposition and three more potentially winning a few seats in March. This compares with three and a half parties in Britain (UKIP is the "half"), outside of Northern Irelan...
Politics
The opposition Conservative People's Party of Estonia has in large part decided its top candidates for the March 2019 Riigikogu elections, to be officially confirmed by the party board on Friday. EKRE's top candidate for Harju and Rapla Counties, Estonia's largest electoral district, will be MP Henn Põlluaas. Party chairman Mart Helme, meanwhile, will run in the number one spot in Pärnu County. Monika Helme will top the party's election list in Lääne, Saar...
Society
Hot on the heels of the Social Democratic (SDE) and Reform parties announcing their primary candidates in each of the 12 electoral districts at the March 2019 general election, ruling coaltion majority party Centre has done the same. Centre, from whose ranks Prime Minister Jüri Ratas comes, will run the latter in Harju and Rapla counties, with three current ministers, one MEP and the deputy head of the Riigikogu joining him as front-runners in other distri...
Society
Prosecutor General Lavly Perling will present an overview of requests for legal help, originating from the Russian Federation, to the Riigikogu on Tuesday. Letters from Russian authorities in 2012 and 2014 reportedly made clear reference to money laundering activity and requested witness input. According to business daily Äripäev, Ms Perling confirmed the letters contained direct reference to money laundering but were confidential and their contents not or...
Society
Coalition partner the Social Democratic party (SDE) has announced its top riders for the March 2019 elections in Estonia's 12 electoral districts, though its full list will be confirmed in December, the party says. There are no real surprises on a well-stocked list which includes the recently-attracted Indrek Tarad, currently still an independent MEP. Mr Tarand, whilst standing for SDE, has not as yet become a party member. Since the system in Estonia is a...
Society
According to Statistics Estonia, the change of the consumer price index in October 2018 was 0.5% compared to September and 4.4% compared to October of the previous year. Goods were 3.7% and services 5.7% more expensive compared to October 2017, while regulated prices of goods and services increased by 9.1%, and non-regulated prices by 3.1%. Compared to October 2017, the consumer price index was affected the most by transport, which contributed nearly a thi...
Society
The Ministry of Culture has rejected the request of English-language web magazine Estonian World (EW) for support from the state to to the tune of €5,000 for the remainder of 2018. The ministry has, however, promised to seek opportunities for supporting the portal in 2019. "Unfortunately, the support to this extent of English-language Estonian media outlets is not provided for in the agenda and budget of the government-approved Compatriots Programme for th...
Society
Last Wednesday, Theatre NO99 abruptly announced that it would be closing its doors, with its final performances scheduled for November and December. The theatre will be vacating a large building at the Central Tallinn address of Sakala 3, interest in which has been expressed by Sakala Skene, a new open centre for the performing arts and theatre education. Sakala Skene is a new brand uniting Polygon Theatre and Polygon Threatre School, Old Baskin's Theatre,...