Ministerial Committee on Economic Policy in favour of establishing project company for eastern rail link
On 21 May 2021, central government and municipal negotiators reached an agreement on establishing a project company for planning the Itärata eastern rail link. The company would be tasked with planning and financing the Lentorata–Porvoo–Kouvola railway line project until the line is ready for construction. The Ministerial Committee on Economic Policy discussed the establishment of the project company from the state’s point of view on 28 September 2021.
The Ministerial Committee was in favour of the central government, represented by the Minister of Transport and Communications, adopting the shareholder agreement of the eastern rail link project company, and agreed that the project company could be established together with minority shareholders.
The project company would include those municipalities whose competent decision-making bodies make an official, enforceable decision to participate in financing the project as described in the shareholder agreement.
The financial commitment of the state of Finland would represent, at the initial stage, a maximum of 51 per cent of the total amount of the financial commitments. A condition for the establishment of the company is that the financing commitments of the central and local governments together cover the estimated costs of the planning needed to reach the construction phase. They would also cover other expenses necessary for the company’s operations. According to a preliminary estimate, the planning costs for the Lentorata–Porvoo–Kouvola railway option would be around EUR 79 million, excluding value-added tax.
The decision to establish a project company for the eastern rail link does not rule out 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 and to develop the conditions for industrial transport.
The Ministry of Transport and Communications has tasked the Finnish Transport and Communications Agency with carrying out a study on the development of transport for business and industry in Eastern Uusimaa and Southeast Finland and on strengthening the competitiveness of the economy. The report is currently being finalised.
Inquiries: Miikka Rainiala, Director of Unit, tel. +358 50 571 7751 and Emmi Nykänen, Ministerial Adviser, tel. +358 50 311 2394, Ministry of Transport and Communications
Government – Projects: Promotion of major railway projects – special purpose vehicle for the eastern rail link (LVM053:00/2020) (in Finnish)