Finland Times

 

The Prime Minister, Alexander Stubb. File Photo Lehtikuva.

The government on Tuesday decided to leave the allocation of start-up funding for the City Rail Loop project for the next government.

 

It was expected that the project would be granted one to two million euros as start-up funding this time, government sources said.

 

The government in an extraordinary plenary session decided to apply for EU support under the TEN-T transport network programme for the project.

 

Meanwhile, Prime Minister Alexander Stubb and Finance Minister Antii Rinne expressed different views over the future of the project after the government’s decision in this regard.

 

The prime minister said he is pleased about the steps taken to move forward the City Rail Loop (Pisara), an underground railway connecting rail lines under the Helsinki city centre, said an official press release. 

 

“The City Rail Loop is moving ahead in the right order. The Government has decided today to apply for EU’s TEN-T support for the project. The next step is to include the project in the technical spending limits to be approved by the Government in March,” said Stubb.

 

Minister of Finance Antti Rinne (SDP) talked to journalists on the government decision for dropping City Rail Loop project in Helsinki on Tuesday. Photo Lehtikuva.

EUR 40 million is reserved for the planning of the project. Negotiations on financing the project have been continuing with local authorities. The construction of the rail line will start in 2016 at the earliest.

 

The prime minister reminded that the state is committed to financing the City Rail Loop as part of the agreement between the state and the municipalities of Greater Helsinki on promotion of infrastructure projects and residential development.

 

“The City Rail Loop is a significant project for the whole of Finland and its progress is important. The next Government needs to reserve financing for the City Rail Loop in its spending limits and back this with a proposal to Parliament on opening a related authorisation,” the premier added.

 

On the other hand, Finance Minister Antii Rinne, who withdrew the funding proposal of the project during a Cabinet Finance Committee meeting, observed that the fate of the project is now uncertain, reported STT.

 

The minister also said the matter was agreed together with the prime minister.