Femern
Search

The state guarantee model

As with the links across Storebælt and Øresund, the Fehmarnbelt link will use the so-called state guarantee model. The model ensures low financing costs, and makes it possible to fund major projects at no cost to the taxpayer.

The users of the fixed link will pay for the Fehmarnbelt link, not taxpayers. The construction is financed by loans raised on the international financial markets that are underwritten by the Danish state. Denmark's high credit rating means that the loans can be taken out at very low interest rates. 

The loans will be paid back over time with the revenue from the users of the link. The revenue will also cover the cost of operation and maintenance of the finished tunnel, as well the cost of construction and operation of the railway from Rødbyhavn to Ringsted. 

You can read more about the state guarantee model in this publication.

THE DANISH STATE’S HIGH CREDIT RATING ENSURES THAT FEMERN A/S CAN RAISE LOANS ON THE FINANCIAL MARKETS AT LOW INTEREST RATES.