Transport 12 implementation progressing well despite challenging cost increases

The first National Transport System Plan, Transport 12, covers the years 2021 to 2032. The Minis-try of Transport and Communications monitors the progress of the measures included in the Transport 12 plan on an annual basis. The second summary report on this was published on 23 November 2023.

Transport 12 provides strategic outlines for the development of the transport system. It ensures that the entire system will be developed on a long-term basis. The plan is being imple-mented by the joint efforts of the staff of the entire administrative branch and in cooperation with stakeholders.

The summary report describes the progress of the financing of the transport system and the measures targeting the different components of the transport system. The summary report mainly covers the progress of state measures.

The changed global situation, increased costs and lack of the necessary funding in the General Government Fiscal Plan for 2025–2027 pose significant challenges to the implementation of the Transport 12 plan. Neither the budget proposals nor the general government fiscal plan include planned increases in the financing of transport services from 2025 onwards. The opportunities for new development projects decrease when projects already under way need additional funding due to increased costs. The repair backlog of transport infrastructure maintenance is also increasing despite the planned funding.

Prime Minister Orpo’s Government Programme outlines measures affecting the implementation of Transport 12. The Government Programme reduces the annual funding level of new transport infrastructure projects by EUR 100–250 million. In addition, the planned increases in grants for walking, cycling and private roads are not indicated in the Government Programme, and instead these grants will be reduced by EUR 5–8 million annually.

However, the Government Programme includes a fixed-term investment programme, which will use revenue from the sale of state assets to finance the development of transport infrastructure by EUR 3 billion.

Most of the planned measures are progressing well. The measures related to information and digi-talisation are progressing mainly in accordance with the Transport 12 plan. The measures that do not require funding are also progressing largely according to plan. However, the lack of funding appears to be a significant challenge.

Next steps

While the Transport 12 plan for 2021–2032 is currently being implemented, an update of the next plan has been launched in accordance with the Government Programme. The development of the plan is supported by a parliamentary working group.

Inquiries

Maria Torttila, Senior Specialist, tel. +358 50 572 2237, [email protected]