Finland and municipalities agree up to €800m for Länsirata railway

The shareholders commit up to EUR 800 million (state EUR 400 million, municipalities EUR 400 million); in addition Länsirata Oy may later raise up to EUR 520 million in state-guaranteed debt. Total costs are estimated at EUR 1.32 billion, and construction of the first sub-projects could start at the end of 2027 at the earliest.

After lengthy negotiations, the state and the participating municipalities (including Turku, Espoo, Salo, Lohja, Vihti and Kirkkonummi), as shareholders in Länsirata Oy, agreed on 31 October 2025 on financing the first construction phase of the partly double-track Helsinki–Turku railway; it covers the Espoo–Lohja, Salo–Hajala and Nunna–Kupittaa sections. The company puts total costs at EUR 1.32 billion; the shareholders commit up to EUR 800 million (EUR 400 million each from the state and the municipalities), and Länsirata Oy may later raise up to EUR 520 million in state-guaranteed debt, on which parliament will decide separately. Cost overruns are borne 67% by the state and 33% by the municipalities, with the state's commitments capped at EUR 920 million plus debt financing costs. The agreement still needs approval from all decision-making bodies and construction of the first sub-projects could start at the end of 2027 at the earliest; Prime Minister Orpo expects the whole line to be built. (LOK Report, 3 Nov 2025; second source: Yle, 31 Oct 2025)