Municipalities face deadline for funding agreement on West Metro project in Finland

Municipalities and the government must reach an agreement on the funding of the West Metro project by November. Municipalities are expected to finalize their budgets for next year during this time, and the contributions due for the upcoming year should be clear. Discussions are currently underway regarding how the project’s initial phase costs will be shared among the shareholders of West Metro Ltd.

The first phase involves constructing a double track between Turku and Salo and a new track from Espoo to Lohja. However, the direct rail connection from Salo to Lohja will not commence during this parliamentary term.

In June, the shareholders signed a preliminary agreement on the terms of construction, agreeing to split the costs equally between the government and municipalities. The participating municipalities—Turku, Espoo, Helsinki, Salo, Lohja, Vihti, and Kirkkonummi—will share a portion of the 400 million euros, with the government allocating another 400 million euros from the budget. Additionally, approximately 500 million euros in external funding is needed.

Turku’s City Secretary, Tuomas Heikkinen, remains concerned that the municipalities’ financial burden is too high. “Currently, it seems that the municipalities’ share of the national infrastructure costs is still excessive. Discussions are ongoing to determine how much each party will contribute to the rail project,” he says.

Negotiations are also focused on how municipalities will divide their funding responsibilities among themselves. Heikkinen emphasizes the urgency, stating, “Municipalities need to approve their budgets by November at the latest. We need to achieve results before then.”