Government’s fourth supplementary budget proposal: Support for public transport services, walking and cycling, infrastructure projects across the country

On 5 June, the Government submitted to Parliament its fourth supplementary budget proposal for 2020.

An appropriation increase of EUR 240.3 million is proposed to the administrative branch of the Ministry of Transport and Communications for 2020.

Public transport

The Government proposes, due to the COVID-19 situation, additional funding of EUR 100 million for purchasing and developing public passenger transport services. The funding will be directed to support the safeguarding of the service level in public transport if the coronavirus situation persists. It will also be aimed at ensuring the continuity of the existing public transport development projects. New development measures will also be promoted.

Walking and cycling

In the supplementary budget, the Government proposes an increase of EUR 18 million in measures to promote walking and cycling in 2020. In addition, an increase of EUR 25 million will be proposed in the 2021 budget to promote walking and cycling.

Infrastructure projects for the stimulus package

In addition to public transport subsidies and support for promoting walking and cycling, the Government proposes, as a stimulus measure, funding for numerous transport infrastructure projects. They will provide support for ensuring that business, industry and citizens have confidence in the recovery of the economy.

The Government proposes budget authorities and appropriations to the following projects:

- An additional appropriation of EUR 30 million to basic transport infrastructure management that will be used for road repair work, including paving of roads

- 1. Main road 12/ highway 65, additional lane for Vaitinaro intersection, Tampere: Authorisation of EUR 1.5 million and an appropriation of EUR 0.1 million for the year 2020

- Improvement of highway 2986 between Punkalaidun and Vesilahti: Authorisation and appropriation of EUR 2.5 million

- New rail switches at marshalling yards/traffic operating points: Authorisation of EUR 6 million and an appropriation of EUR 3 million for the year 2020

- Enhanced maintenance measures in the main rail network: Authorisation of EUR 7 million and an appropriation of EUR 3 million for the year 2020

- Rail repairs between Heinävaara and Ilomantsi: Authorisation of EUR 15 million and an appropriation of EUR 1 million for the year 2020

- Enhanced maintenance work on the rail section between Loviisa and Lahti: An appropriation of EUR 3 million for the year 2020

- Main road 15, Kotka entrance road, construction of Paimenportti interchange: Authorisation of EUR 15.0 million and an appropriation of EUR 0.5 million for the year 2020

- Improvement of main road 8 between Turku and Pori in Eurajoki: Authorisation of EUR 27.1 million and an appropriation of EUR 0.7 million for the year 2020

- Main road 4, improvement of Oulu-Kemi intersections in Simo: Authorisation of EUR 20 million and an appropriation of EUR 4.0 million for the year 2020

- E18, main road 50, improvement of Ring Road III, 3. stage, in Askisto, and construction of additional lanes between Vantaankoski and Pakkala: Authorisation of EUR 30.0 million and an appropriation of EUR 3.0 million for the year 2020

- Improvement of main road 4 between Hartola and Oravakivensalmi: Authorisation of EUR 26 million and an appropriation of EUR 1.0 million for the year 2020

- Improvement of main road 68, construction of new overpass V-1879 in Kolppi, Pedersöre: Authorisation of EUR 5 million and an appropriation of EUR 0.1 million for the year 2020

- Improvement of Kuopio marshalling yard, stage 1: Authorisation of EUR 30 million and an appropriation of EUR 0.5 million for 2020

- Raising the water level in the Saimaa Canal: Authorisation of EUR 5 million and an appropriation of EUR 0.1 million for the year 2020

- Main road 25, underpass of the Leppi intersection in the highway 111 intersection, Karjaa: Authorisation of EUR 3 million and an appropriation of EUR 1 million for the year 2020

- Main road 68, improvement of the Edsevö interchange: Authorisation of EUR 8.2 million and an appropriation of EUR 2.5 million for the year 2020

- Improvement of main road 23 between Varkaus and Viinijärvi: Authorisation of EUR 10.5 million and an appropriation of EUR 6.5 million for the year 2020

- Starting the basic repair of the rail section between Helsinki and Tampere: Authorisation of EUR 8 million and an appropriation of EUR 0.2 million for the year 2020

- Planning of overtaking lanes, main road 8, between Vaasa and Kokkola: An appropriation of EUR 1.0 million for the year 2020

- Transport connections for the GigaVaasa battery industry area: An appropriation of EUR 0.5 million for the year 2020

- Kaarina bypass on Parainen highway - planning: An appropriation of EUR 0.5 million for the year 2020.

An additional appropriation of EUR 3.4 million is proposed for the Transport Infrastructure Agency for the Eurocontrol membership fee. This measure supports Air Navigation Services Finland (ANS Finland) in the economic situation caused by the coronavirus pandemic.

The Government will submit a proposal relating to the fourth supplementary budget to amend the air traffic control fee so that the time limit for the July and October 2020 payment periods be extended by about six months. The proposal is part of the crisis measures proposed by the Government to be taken in the transport sector in response to the COVID-19 epidemic. The proposal will decrease the estimated income from air traffic control fees for 2020 by approximately EUR 5.7 million.

Industrial investment

The infrastructure package for industry includes large investments that generate employment.

The Government proposes budget authorities and appropriations for the following projects:

- Rail connections at the Kemi bioproduct mill, Kemi: Authorisation of EUR 10.5 million and an appropriation of EUR 1.0 million for the year 2020

- Improvement of the rail section between Kontiomäki and Pesiökylä:Authorisation of EUR 81.0 million and an appropriation of EUR 1.0 million for the year 2020

- Improvement of the capacity of the rail section between Oulu and Kontiomäki, 1. stage: Authorisation of EUR 23.0 million and an appropriation of EUR 1.0 million for the year 2020.

Construction works under these projects will not start until Metsä Group has made a decision on the construction of the planned new bioproduct mill in Kemi, and on the implementation of the related transport infrastructure investments.

- Main road 19 between Seinäjoki and Lapua, 1. stage: Authorisation of EUR 25.0 million and an appropriation of EUR 2.0 million for the year 2020

- Digirail pilot: Authorisation of EUR 11.0 million and an appropriation of EUR 2.0 million for the year 2020. In the project, a test track of the European Train Control System will be constructed for the rail section between Kouvola and Kotka/Hamina, and an ETCS laboratory will be set up in a location to be decided later.

Land use, housing and transport projects

The Government proposes budget authorities and appropriations for a number of land use, housing and transport projects with budgetary needs in 2020. These projects were included in the preliminary outcome of negotiations with negotiating groups of the urban regions of Helsinki, Turku, Tampere and Oulu, set up for preparing land use, housing and transport agreements.

The use of appropriations under the agreements is subject to the commitment of the municipalities of Helsinki, Turku, Tampere and Oulu regions to the objectives and measures under the agreement for 2020-2031 and to their financing, as confirmed in the outcome of the negotiations.

Budget authorities and appropriations are proposed for the following projects:

- The authorisation for the Tampere tramway will be increased by EUR 13.957 million. The additional appropriation for the Tampere tramway for 2020 will be EUR 4.18.

- Regional general planning (Tampere): EUR 0.46 million

- The light rail between Mellunmäki, Tikkurila, Aviapolis and the airport: Authorisation of EUR 6.1 million and an appropriation of EUR 0.3 million for 2020

- The Espoo urban railway: Authorisation of EUR 137.5 million and an appropriation of EUR 1 million for 2020

- Increasing the capacity between Helsinki and Riihimäki, 2. stage: Authorisation of EUR 273 million and an appropriation of EUR 5 million for 2020

- Preparations for increasing the capacity of the rail section between Helsinki and Pasila: Authorisation EUR 0.6 million and an appropriation of EUR 0.2 million for 2020

- Advancing the planning of the main rail line between Tampere and Oulu: Authorisation of EUR 5 million and an appropriation of EUR 0.1 million for 2020

- The Oritkari triangle line: Authorisation of EUR 15.6 million and an appropriation of EUR 1.6 million for 2020.

The negotiations on land use, housing and transport agreements with the urban regions of Helsinki, Turku, Tampere and Oulu resulted in a preliminary outcome on 2 June 2020. The agreements promote sustainable transport projects and affordable housing production, especially in areas that have good public transport links.

The Government undertakes to reserve EUR 755.8 million for measures in the transport sector. The costs of the projects will be divided over several years (2020-2031). This means that it will also be necessary to make financial provision for implementing the projects for example in the general government fiscal plans and in the preparation of the national transport system plan.

The agreements based on the negotiation results will not enter into force until the regions and the Government have approved them in their decision-making bodies. In order to extend the procedure for agreeing on land use, housing and transports, negotiations will next be continued with three new regions: Jyväskylä, Lahti and Kuopio.

Support for journalism and news agency activities

The Government proposes to allocate EUR 5 million for the support of journalism in 2020. This will provide support to media facing financial difficulties due to the coronavirus situation. Support could be sought for projects that aim to strengthen high-quality local or regional journalism, investigative journalism, production of more in-depth reports and delivery of journalistic content to digital platforms.

An additional appropriation of EUR 2.5 million is proposed for supporting the activities of the national news agency, the Finnish News Agency STT. The support will ensure the continuation of the national news service, particularly important for regional actors, in its current form.

Other appropriations

An appropriation of EUR 2.75 million is proposed for the Transport Infrastructure Agency for use in meeting the asset depreciation and capital costs of traffic management and control as Traffic Management Finland takes charge of the assets in question. The appropriation is meant for the investment projects related to traffic management and control, which were in progress at the time the traffic management company was started and have since been completed, to be transferred to the traffic management company wholly owned by the state.

An additional appropriation of EUR 10.9 million is proposed to the Transport Infrastructure Agency for the purchase of rail infrastructure management material. The material reserve of rail infrastructure management has been transferred to foreign ownership. Due to the adequate self-sufficiency and preparedness in rail infrastructure management, it is appropriate that the Transport Infrastructure Agency purchase the reserve of critical materials to keep it in its own control.

An additional appropriation of EUR 225,000 is proposed for the operating expenses of the Finnish Meteorological Institute. It is intended to be used to transfer the aviation weather observation systems at Mikkeli and Seinäjoki airports to the ownership of the Meteorological Institute and to renew the systems.

Inquiries:

Sanna Ruuskanen, Director of Unit, tel. + 358 50 376 2377

Timo Kievari, Director of Unit (transport infrastructure projects; land use, housing and transport projects), tel. +358 40 059 3706