Railway tracks in Salo. The line will run from Espoo to Turku via Veikkola, Vihti, Lohja and Salo. Photo:
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The Finnish state and six municipalities have reached agreement on the first-phase shareholder contract for the Länsirata railway project.
The Ministry of Transport and Communications announced the outcome on Friday after prolonged negotiations. The agreement covers the funding structure and governance model for the planned high-speed rail line between Espoo and Turku.
The municipalities involved are Espoo, Turku, Salo, Lohja, Vihti and Kirkkonummi.
The shareholder agreement and its attachments will undergo technical revisions before submission to municipal councils and government bodies in November and December.
The draft agreement is scheduled for public release on 6 November, when it enters political processing in the first municipalities.
Espoo and Turku are covering most of the costs. Their financial contributions are significantly larger than those of smaller municipalities. Turku has pledged 130 million euros, while Kirkkonummi will pay 15 million euros.
The total cost estimate stands at 1.32 billion euros at current price levels.
State and municipal owners will each contribute 400 million euros to the initial phase. Länsirata Oy, the project company, will be allowed to raise an additional 520 million euros in loans, guaranteed by the Finnish state.
If costs rise, the state will cover 67 percent and municipalities 33 percent of the increase, up to a state cap of 920 million euros excluding interest.
The line will run from Espoo to Turku via Veikkola, Vihti, Lohja and Salo. The agreement outlines construction in two phases.
The first includes new tracks between Espoo and Lohja, plus second tracks on the Salo–Hajala and Nunna–Kupittaa sections.
The second phase will cover the Lohja–Salo and Hajala–Nunna stretches. Municipalities have already agreed to finance the second phase with 300 million euros.
Erkki Eerola, municipal manager of Vihti, said Länsirata would support local development. “Länsirata is one of our most important growth investments,” he said.
He added that the rail link supports population growth, employment and land use, especially near the Microsoft data centre development and future residential zones. The line is part of the EU’s TEN-T network and expected to bring more localities into the passenger rail system.
According to the ministry, construction will begin no earlier than late 2027, depending on municipal council approvals and the outcome of permit procedures and procurement rounds. Work during the current government term will focus on planning and preparation.
Political opposition remains. In Espoo, members of the Finns Party, Christian Democrats and Swedish People’s Party oppose the project. Should either Espoo or Turku withdraw, the project would face collapse due to their financial weight.
If ratified, the agreement will establish procedures for cost control, governance and decision-making within Länsirata Oy.
The state has stressed the need to monitor cost developments closely.
HT
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Source: www.helsinkitimes.fi
