Representatives of Estonia, Latvia, Lithuania, Finland and Poland reached an agreement Tuesday evening in Brussels on forming a joint venture Rail Baltica, LETA/Postimees Online reports.

The transport ministers of the five states will have to sign the joint declaration at the unofficial transport council meeting in Vilnius in September.

The aim of the Rail Baltica joint venture is coordination of preparations for building the railway line, including preparing the financing applications of the project for the European Commission, harmonising legislation, compiling the business plan for Rail Baltica etc.

It was agreed that in every Baltic state, the infrastructure of Rail Baltica will belong to that specific state where it is located. every shareholder contributes 0.65 million euros a year over the next four years.

Estonian economy and communications minister Juhan Parts said that the agreement on Rail Baltica is a very welcome one.

The joint venture will belong initially to the three Baltic States but Finland and Poland can join it.

Rail Baltica is a speed railway that has planned speed of 240km/h.