Go back

Large-scale rail projects financial feasibility study led by the Ministry of Finance

Large-scale rail projects financial feasibility study led by the Ministry of Finance

In late 2020, the Finnish Government’s Economic Policy Committee agreed on cooperation between the Ministry of Transport and Communications and the Ministry of Finance on major rail infrastructure projects that are currently in the planning stage. The projects will provide faster train connections between Helsinki-Turku, Helsinki-Tampere and Helsinki-Porvoo-Kouvola. The publicly owned project planning companies set up for the task are Turun Tunnin Juna Oy (now Länsirata Oy), Suomi-rata Oy (now Lentorata Oy) and Itärata Oy.

During 2021-2022, the ministries have jointly carried out a study on the financing and investment opportunities of the Large-scale rail projects, which has examined the investment conditions for these railway projects, including real estate development opportunities, traffic revenues and other possible financing options. In particular, the aim has been to identify the level of public contribution (state and local) that would be required to implement each project, as well as other alternative sources of funding. The aim of the study project was to provide an idea of the scale of the investment capacity to support decision-making on the long-term policy for the construction of these transport corridors and on launching negotiations with cities and municipalities on participation in possible investments.

CAPEX Advisors has acted as financial advisor on the study of financing and investment opportunities for the Large-scale rail projects. CAPEX Advisors’ tasks have included description of feasible project financing and repayment models, description and evaluation of the project organisation and management model, evaluation of possible paths forward, financial modelling of the implementation and financing of the investment projects based on the project company model, and the evaluation of the economic impact of the projects on the owners of the project company.

Further information: Pekka Neva, Partner pekka.neva@capexadvisors.fi

Subscribe to our newsletter

    • Subscribe to the Capex Advisors newsletter. You will be the first to hear about current topics and our publications.

    By sending this message you agree with the handling of your data in accordance with our privacy policy. The form is protected to prevent spam with Google's reCAPTCHA service, which is accompanied by the service's privacy policy and terms of use.

    Please don't hesitate to contact us or request a quote

      By sending this message you agree with the handling of your data in accordance with our privacy policy. The form is protected to prevent spam with Google's reCAPTCHA service, which is accompanied by the service's privacy policy and terms of use.