Project company

The government approves the creation of a project company for the eastern rail link

Preparations for a project company for the advancement of the East rail link:

On October 28, 2021, the government decided to authorize the Ministry of Transport and Communications to create a new limited liability company partially owned by the state for the eastern rail link.

The Ministry of Transport and Communications may sign the documents relating to the constitution and subscribe, on behalf of the State, the shares of the public limited company to be constituted.

The Finnish State has undertaken to capitalize the company according to the terms and conditions of the shareholders’ agreement.

The company would be responsible for planning and financing the Lentorata-Porvoo-Kouvola railway line project until the line is ready for construction.

On September 28, 2021, the Ministerial Economic Policy Committee voted in favor of the creation of the East rail link project company.

On October 28, 2021, the government authorized the Ministry of Transport and Communications to approve, on behalf of the state, the liquidation of Nordic Railways Ltd (Pohjolan Rautatiet Oy). The company was founded in February 2019 to comprehensively develop rail transport services. He has no commercial activity.

And after?

The project company for the eastern rail link will be incorporated after the expiry of the deadline for appealing municipal decisions.

A prerequisite for creation is that the financial commitment of the Finnish state represents, at the start-up stage, a maximum of 51% of the total amount of financial commitments.

Any appeals process may have an impact on the timing of the incorporation of the company, therefore the exact date of incorporation cannot be indicated.

Source: Ministry of Transport and Communications


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *