For consideration of establishing a special infrastructure association

In order to facilitate increased infrastructure projects, it is considered to establish a special infrastructure company or state party that handles the financing of larger transport projects, such as for tunnels and comparable accelerators.

This is stated in a new financial plan presented by the Minister of Finance today, where there is a section discussing New ways in financing to accelerate transport projects.

Restricted scope

It should be noted that in a proposal for a parliamentary resolution on a transport plan for the years 2024–2038, which has not been passed by the parliament, plans for tunneling for up to ISK 185 billion. over a 15 -year period. It is stated that the hardcore plan has been presented outside the framework of the financial plan and it is therefore unclear how the financing of tunnels and other accelerators will be carried out.

« Due to the narrow position of fiscal policy, it is clear that there will be very limited scope to launch such major projects in the coming years on the basis of direct contributions from the Treasury according to the transport plan, » the plan says.

Important to seek new ways

It also says that if the stationary position that has prevailed in tunneling in this country is to be broken, it is important to seek new ways of funding that could also be useful to accelerate other important transport projects. In this context, the experience of neighboring countries can be considered, with a focus on macroeconomically profitable accelerating.

« There is considerable benefit to the economy for increased construction projects in the field of transport, MA to increase traffic safety, shorten traffic routes and improve connections between regions and business areas.

In order to facilitate increased infrastructure projects, it is considered to establish a special infrastructure company or state party that handles the financing of larger transport projects, such as for tunnels and comparable accelerators. The framework for financing, implementation and operation of traffic structures that fall under this kind of arrangements must be well-defined with financial sustainability as a guiding light, as funding would be outside Part A of the budget, ”says the financial plan.

Could be encouraged to increase the involvement of pension funds

It also says that it is possible to contribute such parties to the state’s equity, for the form of existing transport infrastructure to create a revenue stream that would be used to launch profitable new construction and update of older infrastructure. Such parties could also grant borrowing authorizations, as future income flows from transport infrastructure would be pledged to finance profitable investments in new transport infrastructure, but so that it does not cause unacceptable risks to the Treasury. Thus, Tam could encourage increased involvement of pension funds and other investment funds in infrastructure investments. However, since the state was involved, the risk of the performance of such an infrastructure company would lie with the Treasury.

Furthermore, at the same time, this would have to be undertaken for a review of the Collaborative Projects Act on transport projects in order to be able to establish successful cooperation between the state, pension funds and private parties in infrastructure development.