Merko Ehitus

Legal Proceedings Report • May 16, 2025

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

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 (merko.ee (https://merko.ee/en/)) 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: +372 680 5105.

Urmas Somelar
Head of Finance
AS Merko Ehitus
+372 650 1250
[email protected] (mailto:[email protected])

AS Merko Ehitus (group.merko.ee (https://group.merko.ee/en/)) 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.