A New Era of Opportunity - Infrastructure Modernization in CEE

Central and Eastern Europe is entering a newphase of infrastructure modernization that could reshape the region’sconnectivity, competitiveness, and economic resilience. As the EU acceleratesits green and digital transitions, CEE countries are leveraging record levelsof European funding to develop airports, railways, roads, and logisticscorridors that will better link them even more effectively to the globalmarkets.

These ambitious projects represent not only acritical step in strengthening the region’s infrastructure but also a majoropportunity for international companies in construction, engineering, digitaltechnology, and manufacturing. However, participation in these projectsrequires navigating complex regulatory frameworks, political dynamics, andcompetitive procurement processes.

Flagship ProjectsDriving Regional Transformation

Across the region, several large-scale projectsare already transforming connectivity and logistics. In Poland, the CentralnyPort Komunikacyjny (CPK) - a €35 billion initiative combining a new airport with a network of high-speed rail and road links - aims to integrate 12 major cities within 2.5hours and serve as a key transport hub between Western Europe and the Baltics. Thesignificance of this project has been at the center of debate among Polishpoliticians, which has raised questions about its future; however, as of now,its completion is scheduled for Q3 2032. The project underscores Poland’sambition to position itself as a strategic logistics center for the region.Complementing this is the planned construction of a new strategic container terminal in Świnoujście, valued at around €2.3 billion.With completion expected in 2028, the terminal will play a critical role instrengthening Poland’s maritime capacity and boosting North-South trade withinthe EU’s Trans-European Transport Network.

Further north,the €5.8 billion Rail Balticaproject will connect Estonia, Latvia, Lithuania, andPoland with a high-speed rail line designed for both passenger and freighttransport. This is one of the EU’s flagship investments in regionalintegration, linking the Baltic states more closely with Western Europe andreducing their dependence on existing infrastructure networks to the east. Forinternational rail and engineering firms, Rail Baltica represents an extensivepipeline of opportunities in design, construction, signaling, and smartmobility solutions. It is, however, worth noting that by the end of 2025, around 43% of the Rail Balticamainline is expected to be construction-ready, marking a decisive step towarddelivering Europe’s most ambitious cross-border rail project.

Romania is also rapidly expanding its transportand aviation infrastructure to strengthen its position as a logistics andbusiness hub in Southeastern Europe. The most prominent initiative is theplanned Binghatti Aerocity airport near Bucharest - a €2.5 billion projectdesigned to relieve congestion at Henri Coandă International Airport and createa new aviation gateway for the region. Alongside it, the €400 million Alexeni Airport project will establish a major cargo hub serving theBlack Sea and Danube corridors. Both developments align with Romania’s broaderambition to attract more investment in logistics, air cargo, and high-valuemanufacturing, while improving regional and international connectivity.

In Bulgaria, several major projects are helpingto bridge infrastructure gaps and improve cross-border mobility. One example isthe modernization of the Elin Pelin–Kostenets rail line – a nearly €1 billion investment that isimproving travel times and safety on a key east–west transport corridor. However,this project is facing major challenges – particularly regarding escalatingcosts. It was recently announced that between 2022 and the end of 2024, theproject’s costs have exceeded the initial estimate by approximately €62 million(excluding VAT). Still - thisand several other projects illustrate Bulgaria’s growing role as atransit and manufacturing link between Central Europe, the Balkans, and theMediterranean.

The scale of infrastructure development in theregion opens significant opportunities for international companies acrossmultiple sectors. Engineering and construction firms will be in demand fordesign, planning, and project management expertise in large, technicallycomplex environments. Manufacturers can benefit from local sourcingopportunities for steel, cement, rolling stock, and sustainable constructionmaterials. Moreover, the increasing digitalisation of transport networks alsocreates openings for technology providers.

Challenges in Participation

The path to participation in this new investmentcycle is not without challenges. Key factors shaping success include:

• Complex regulatory and     procurement systems: Navigating fragmented EU and national frameworks     requires strong institutional knowledge and administrative capacity.
• Political and economic     volatility: Shifts in policy priorities, inflationary pressures, and     currency fluctuations can affect project timelines, costs, and     profitability.
• Intensifying     competition: Global players from Europe, the Middle East, and Asia are     increasingly active in the region, raising the bar for quality, price, and     innovation.

To succeed, companies must combine strategicforesight with operational adaptability. Understanding funding frameworks iscrucial for identifying viable entry points and aligning proposals with EU andnational priorities. Strong partnerships with local contractors, suppliers, andauthorities can significantly improve competitiveness and ensure smootherexecution.

Equally important is the ability to anticipateand respond to evolving regulatory and sustainability requirements. As the EUtightens environmental standards, firms must remain vigilant on ESG reporting,state aid rules, and taxonomy compliance. Those integrating sustainability intotheir core business models will be best positioned to secure contracts andmanage long-term risks. Finally, managing geopolitical and operational risks -from regional instability to labor shortages - remains essential to ensurecontinuity and resilience.

Key Considerations:

·      Understanding EU and national funding mechanisms – A thorough grasp of how projects arefinanced, from EU funds to local public–private partnerships, helps firmsidentify opportunities and tailor their bids effectively.

·      Building credible local partnerships – Collaborating with domestic contractors andregulators enhances project delivery and helps meet local content requirements,often a decisive factor in procurement success.

·      Monitoring regulatory evolution – Staying informed about changes to EUprocurement, environmental, and social frameworks is key to maintainingcompliance and competitiveness.

·      Mitigating geopolitical and operational risks – Firms should build resilient strategies tomanage potential disruptions stemming from political change or regionalinstability.