The ministries stated last week that the implementation of the projects would require substantial public sector investment, as other sources of funding, such as operator and user fees, would be relatively small compared to the required investment. Although private investors have also expressed interest in such projects, they would likely require state guarantees, leaving the risks ultimately on the shoulders of the public sector.
The preliminary cost estimate for the Helsinki–Tampere route is 4–5.5 billion euros, the Helsinki–Turku connection 3.4 billion euros, and the Helsinki–Kouvola connection 1.8 billion euros.
The Ministry of Finance reminded on Tuesday that the cost estimates contain considerable uncertainties, partly because the projects are in different stages of implementation and partly due to reasons related to the global economy, inflation, interest rates and the development of passenger numbers.
“When assessing the costs that major rail projects would impose on the public sector, it must also be taken into account that the implementation of the project has many potential impacts, including environmental, socio-economic and wider economic impacts, which must also be weighed in connection with a potential investment decision, the release reads.
According to estimates made by the ministries, the share of emissions generated during the construction phase of the projects’ total climate impact would be significant. Assuming the use of existing building materials and methods, the emission reductions caused by the operation would be enough to offset the emissions in 140–330 years.
However, it is possible that technological innovations can reduce the estimated climate impact significantly, the ministries estimate.
Aleksi Teivainen – HT
Source: The Nordic Page