The Fehmarnbelt Fixed Link is user-financed. The economics of the project are sound and robust.
The Fehmarnbelt Fixed Link is user-financed. Revenue from the Fehmarnbelt Fixed Link will be used to repay the loans raised to finance the construction, which is the same model that has financed the Storebælt and the Øresund Fixed Link.In February 2016, Femern A/S produced an analysis of the economics of the project, including construction costs, operating costs, maintenance and reinvestments, EU subsidies, traffic revenue and interest expenses. The analysis showed that the economics of the project are sound. The 2016 analysis is available here.
In the spring of 2020, the Fehmarnbelt Fixed Link’s financing model was approved by the EU Commission - with a new decision on the part of the Commission. Femern A/S has therefore updated the project’s financial analysis following the final German approval from the Federal Administrative Court in Leipzig on 3 November 2020.
The Fehmarnbelt Fixed Link has a repayment period of 28 years from the time of the opening in 2029.
"The financial analysis confirms that the economics of the project are sound and robust. We therefore have a firm financial basis for the construction phase following German approval,” says Allan Christensen, Femern A/S’ Finance Director.
The updated financial analysis from November 2020 is available here (in Danish).
The Fehmarnbelt Fixed Link’s overall financial framework of DKK 55.1 billion (2015 prices) is determined in the 2015 Construction Act. Femern A/S follows a construction budget of DKK 52.6 billion as its management and reporting basis of which DKK 7.3 billion are reserves. The size of reserves has been determined by the professional services organisation, EY, on the basis of a thorough external audit of the economics and risks of the project.
The report is available at the Ministry of Transport and Housing’s website (in Danish).
THE FINANCIAL ANALYSIS ESTIMATES A REPAYMENT PERIOD FOR THE FEHMARNBELT LINK OF 28 YEARS