Finland: Ministerial Committee on Economic Policy supports the eastern railway project

NordenBladet — On 20 January 2020, the Ministerial Committee on Economic Policy supported the guidelines for promoting the investment in the eastern rail transport link.In line with the guidelines advocated by the Ministerial Committee, the Ministry of Transport and Communications will continue the negotiations with the municipalities benefiting from the eastern rail transport investment and possible other publicly-owned bodies on setting up a project company. The project company would be responsible for the project-related planning and its funding until the construction phase.

Negotiations to continue on the basis of the Airport line–Porvoo–Kouvola routeThe project company to be set up for promoting the fast rail line in the eastern direction would be tasked with designing one new rail link. The project company negotiations will continue on the basis of the Airport–Porvoo–Kouvola route. According to a preliminary estimate, the planning costs for the route would be around EUR 70 million.The conditions for setting up the project company would be on an equal footing with the Finland Railway (Finland’s main railway line) and One Hour Train (fast rail link between Helsinki and Turku) companies.  At the initial stages, the state would own at least 51 per cent of the project company. The establishment of the project company would require that the other shareholders would commit themselves to providing capital to the company covering approximately 49% of the planning costs incurred until the construction can be launched and other costs required for the operation of the project company.

The party responsible for the ownership steering of the project company would be the Ministry of Transport and Communications.

Final decision to be taken by Parliament
However, the decision on the central government’s financial contribution and the use of the appropriation for capitalising the project company would be made by Parliament. The result of the negotiations and the shareholder agreement would be later discussed separately at the Ministerial Committee on Economic Policy.

The guidelines on the project company for the eastern rail link do not exclude the future development of other transport connections in the eastern direction. The Ministerial Committee is aware of the need to improve the accessibility of Eastern Uusimaa and Southeast Finland as well as the conditions for industrial transport. The Ministry of Transport and Communications will carry out a study on the development of transport services for the business and industry in Eastern Uusimaa and Southeast Finland and on strengthening the competitiveness of the business sector.