Negotiations continue over funding for high-speed rail link between Turku and Helsinki

Negotiations between municipalities and the state regarding the funding allocation for the construction of a high-speed rail link between Turku and Helsinki, known as the West Track, remain unresolved. Key stakeholders, including the cities of Turku, Salo, Espoo, Lohja, Vihti, and Kirkkonummi, expressed dissatisfaction with a preliminary agreement reached in the summer, which proposed a 50-50 cost-sharing arrangement for the estimated €800 million project between the state and the municipalities.

Pekka Puistosalo, the city planning director of Lohja, reported that no specific financial contributions at the municipal level were decided in today’s talks, which are expected to continue throughout the fall, aiming for resolutions by the end of the year. He emphasized a shared belief in the project’s value and noted the need for a collective commitment among stakeholders regarding the entire railway project’s progression. Municipalities must prepare for potential financing through loans.

Virpi Sailas, the mayor of Kirkkonummi, voiced optimism about the negotiations with the state, emphasizing the importance of full participation from all municipalities along the West Track. Ongoing discussions will cover the municipalities’ financial contributions concurrently with shareholder agreement negotiations.

The first phase of the project, which encompasses the railway segment between Espoo and Lohja and partial double tracks near Turku, is estimated to cost €1.3 billion. The municipalities involved are set to share a €400 million portion of the expenses, while the state has earmarked another €400 million in its budget. An additional €500 million will be sought from external funding sources. The project previously sought €176.28 million in CEF support from the EU but was unsuccessful in July. However, future funding opportunities remain available.