null Eastern rail link project company negotiations to continue based on Porvoo-Kouvola route

Eastern rail link project company negotiations to continue based on Porvoo-Kouvola route

Press release 30.09.2020 17.45 fi sv en

Empty rails (Photo: Shutterstock)

Negotiations on an eastern rail link project company will continue based on the Airport-Porvoo-Kouvola railway route.

On 10 September 2019, the Ministerial Committee on Economic Policy decided that a high-speed eastern railway link would be promoted in cooperation with regional actors.The project company would be responsible for planning related to the project and its funding until the construction phase.As in the case of the project companies for the Finland Railway link and the high-speed rail link between Helsinki and Turku, the central government must own at least 51% and the other shareholders approximately 49% of the eastern rail link project company at the establishment stage.

According to a preliminary estimate, the planning costs of the eastern rail link will be approximately EUR 70 million in the case of the Porvoo-Kouvola route and approximately EUR 110 million in the case of the Porvoo-Kotka-Luumäki route (estimates VAT 0%).

The requirements for establishing a project company as well as the company’s responsibilities have been assessed together and in cooperation with municipalities and regional actors.A prerequisite for the establishment of a project company is the arrangement of sufficient funding also from minority shareholders.

In summer 2020, the Ministry of Transport and Communications started discussions on the requirements for establishing a project company for the eastern rail link. A launch event with the municipalities was held on 24 June 2020.

The Ministry of Transport and Communications requested regional actors to indicate at the latest by 31 August 2020 whether they have, on a preliminary basis, the prerequisites to participate in the capitalisation of a project company, taking into consideration the above-mentioned constraints on the establishment of a project company.

Based on the responses received from regional actors, the municipalities’ funding contribution, totalling EUR 34.3 million, appears to be met for a project company whose responsibility would be to plan and finance the Porvoo-Kouvola railway route until the construction phase.On the other hand, based on the responses of the municipalities that supported the planning of the Porvoo-Kotka-Luumäki railway route, the funding of the project company appears to fall short by just over EUR 16 million of the approximately EUR 54 million required.

Negotiations will continue with at least Helsinki, Porvoo, Kouvola, Lappeenranta, Kuopio, Mikkeli, Joensuu, Imatra, Pieksämäki, Varkaus, Kajaani and Iisalmi.Other parties, such as other eastern Finland track-side municipalities, may also participate in the negotiations and the establishment of the project company.

What next?

The Ministry of Transport and Communications will continue negotiations with municipalities on an eastern rail link project company based on the Airport-Porvoo-Kouvola railway route.

The central government’s participation in the eastern rail link project company discussions and its funding contribution will be discussed in the Ministerial Committee on Economic Policy during autumn 2020.The central government’s funding contribution to the project company would be decided by Parliament.

Inquiries:

Miikka Rainiala, Director of Unit, tel. +358 50 571 7751