Shareholders and the government will meet again on Friday to discuss the West Rail project funding. This railway would connect Helsinki to Turku in approximately one hour.
The goal remains for municipal councils to review the shareholder agreement in November. This would determine the project's future direction.
Transport Minister Lulu Ranne stated that parties could reach agreement during Friday's meeting. The government considers its draft shareholder agreement acceptable.
Ranne confirmed the possibility of consensus via text message. She said any agreement would be announced separately.
Municipal sources contacted for this story don't rule out a Friday resolution. They suggest one additional meeting might still be needed to finalize all details.
A complete agreement might not emerge on Friday. But the West Rail contract now appears extremely close to completion.
Municipalities indicate only technical details remain unresolved. One source described the remaining issues as tedious fine-tuning.
One source expressed strong belief that a shareholder agreement will be reached. They estimate some details won't be finalized by Friday.
The municipal share of West Rail funding totals 400 million euros. The government would contribute the same amount. Project company West Rail Oy could borrow over 500 million euros.
Funding amounts and municipal shares were already agreed upon earlier. The government won't provide additional funding during this electoral term.
Municipalities have already allocated 300 million euros for the project's second phase. The government will consider second phase procurement during future electoral terms.
The first phase would connect Espoo-Vihti-Lohja, Salo-Hajala and Nunna-Kupittaa. Sections between Lohja and Salo and between Hajala and Nunna would wait for a potential second phase.
What specific details remain open?
Municipalities worry about what happens when West Rail Company's loan matures. Friday's meeting will review external assessments about transferring assets to the Finnish Transport Infrastructure Agency.
Built assets would transfer to the state rail network without compensation when operational. The transfer timing considers municipal shareholders' financial position and potential write-down risks.
Municipal financing costs for the 520 million euro loan would end upon transfer to the Agency. Turku city will request accounting consortium statements about related write-offs.
Lohja city financial manager Raija Lindroos explained the situation to residents during a Monday information session.
Lindroos said writing off the entire 520 million euros would create a catastrophic single-year impact. Preliminary discussions addressed track lifespan between 50 and 100 years. Longer depreciation periods would make accounting different.
Sources emphasize this doesn't involve actual disagreement. Parties want to ensure proper accounting procedures.
Last-minute negotiations also addressed the Transport Infrastructure Agency's concerns about substantial cost risks.
If risks materialize, discussions covered how and in what order potential cost increases would affect project progress. The government's strict funding ceiling is already known. No actual dispute exists about this matter.
Monday's Lohja information session presented agreement about spending sequence for West Rail funds.
First phase financing proceeds with 400 million euros from government and 100 million from municipalities. Second phase adds 100 million euros from municipalities. Third phase seeks 520 million euros in external capital and uses municipalities' remaining 200 million euros.
The government covers 100% of loan repayments while municipalities cover 33% of costs, fees and other expenses. The draft shareholder agreement sets a ten-year loan repayment period. The loan matures when construction ends and assets transfer to the Transport Infrastructure Agency.
The Lohja session also revealed costs for different track sections.
The most expensive Vihti-Lohja section would cost 510 million euros plus 14 million for construction planning. The Espoo-Hista section would cost 309 million euros plus 9 million for planning.
Negotiations slowed because simultaneous discussions occurred about taxi law reform and land use legislation concerning wind power distance regulations.
The Finns Party bundled these issues together while wind power is handled as a climate matter. Minister Lulu Ranne bears responsibility for these reforms within the Finns Party.
The National Coalition Party perceives Ranne as slowing projects down.
The Finns Party sees the National Coalition wanting West Rail advancement for Turku-native Prime Minister Petteri Orpo before other matters resolve. Therefore taxi and wind power issues haven't been negotiated recently.
National Coalition members counter that all projects are separate and follow the government program.
Both parties currently want to believe West Rail progress will soon advance taxi law and wind power regulations. Sources estimate these matters are already quite close to agreement.
This picture was reinforced when Ranne suggested to Yle that the Finns Party might abandon the taxi meter requirement opposed by the National Coalition under certain conditions. The National Coalition also expresses desire to advance negotiations and find solutions.
Ranne messaged that taxi issues should hopefully resolve soon.
Sources indicate taxi negotiations will proceed separately after West Rail advances, probably not on Friday.
The government has long debated climate matters.
October reports indicated the government negotiates climate policy action programs. Decisions will occur in two programs: the Medium-term Climate Plan and the Energy and Climate Strategy.
Both fall under Minister Sari Multala's responsibility and are negotiated simultaneously.
The Finns Party aimed for the government to abandon commitment to climate law containing the 2035 carbon neutrality target. The National Coalition and Swedish People's Party reject this.
Sources report progress in action programs. Recent negotiations focused on the Energy and Climate Strategy since the Medium-term Climate Plan involves less contention.
Strategy negotiations occurred Thursday among certain ministers and special advisors in the government's clean energy, environment and security of supply working group.
Wind power distance regulation is handled alongside climate matters. Land use law and Energy and Climate Strategy negotiations proceed in the same package.
The goal remains presenting action programs to parliament in November as reports, following the government's legislative plan.
The government hasn't resolved wage transparency reform from labor market disputes, prepared due to an EU directive. These negotiations have stalled.
Last Wednesday brought updates about state subsidy reform. The reform hasn't reached statement proceedings or negotiation agreement. The reform also causes friction within parties like the National Coalition due to strong regional interests.
Analysis: The West Rail project demonstrates how complex infrastructure initiatives often get entangled in broader political negotiations. While technical details remain, the real hurdles appear to be political trade-offs between coalition partners on unrelated matters like taxi reforms and wind power regulations.