Construction contract in Estonia (Rail Baltica main line Tallinn-Pärnu section)

On 16 May 2025, AS Merko Ehitus Eesti, part of AS Merko Ehitus group, and GRK Eesti AS, GRK Suomi Oy, NGE Contracting, Sweco Finland Oy, Sweco Sverige AB and TSO SAS signed a design and construction contract following alliance procurement model with OÜ Rail Baltic Estonia.

The contract includes construction of the superstructure of the section of the railway between Ülemiste passenger terminal and Pärnu, together with the substructure of the Tootsi-Pärnu section. The contract covers a railway route with a total length of 142 km. The works will be  carried out in the form of an alliance agreement, in which the railway will be built in close cooperation between the ordering party, the contractor and the designer.

The ordering party has  estimated the total cost of the design and construction to be 394 million euros, plus value added tax. In accordance with the alliance procurement contract principle, the schedule and actual cost of the design-and-build works will be  determined in cooperation between the parties during the development and implementation phase of the contract.

In carrying out the works, GRK Eesti AS is the leading partner. AS Merko Ehitus Eesti is  estimated to have a 20% share of the construction works.

AS Merko Ehitus Eesti () is a recognised Estonian construction company, which offers construction services in general construction, civil engineering and residential construction.

Additional information: AS Merko Ehitus Eesti, Director of the Civil Engineering Division, Mr. Arvo Keller, phone: .

Urmas Somelar

Head of Finance

AS Merko Ehitus

AS Merko Ehitus () group companies construct buildings and infrastructure and develop real estate. We create a better living environment and build the future. We operate in Estonia, Latvia, and Lithuania. As at the end of 2024, the group employed 605 people, and the group’s revenue for 2024 was EUR 539 million.