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Western Rail project denied EU funding for development in Finland

Monday 29th 2024 on 10:03 in  
Finland

The Western Rail project, formerly known as the Turku Hour Train, has been denied EU funding from the Connecting Europe Facility. In mid-July, the European Commission allocated support to various projects, but the Western Rail did not score high enough to qualify for the requested €176 million in funding. A profitability assessment reviewed by Iltalehti indicates the project fell short by 1.5 points, receiving 20.5 points while a minimum of 22 points was required for funding approval.

The evaluation was based on five criteria, each worth a maximum of five points. The project’s lowest score was in maturity, indicating that its permitting processes are not sufficiently advanced. According to the Commission’s scoring breakdown:
1) Priority and urgency: 4.5 points (very good)
2) Maturity: 3 points (good)
3) Quality: 4.5 points (very good)
4) Impact: 4.5 points (very good)
5) Catalytic effect: 4 points (very good)

The Commission deemed the Western Rail project economically viable but not financially sustainable, indicating it would not generate enough revenue to cover its investment costs—a conclusion also supported by Finland’s Ministry of Finance in January. The Commission anticipates that rail traffic demand could triple with the Western Rail, projecting 2.4 million passengers in 2023 and 7.8 million by 2040, with most new users transitioning from private car use.

Despite the disappointment regarding EU funding, the project company, Länsirata Oy, plans to continue its development efforts. CEO Pekka Ottavainen remarked that they will apply for future funding opportunities from the new EU Commission, expected to be available in one to two years. In June, the state and municipalities agreed to share the project’s funding equally, each contributing €400 million.

Source 
(via yle.fi)