Skip to main content

Fehmarn Fixed Link project finally gets European Commission approval

EC settles the public financing issue for the Fehmarn project that includes an immersed tunnel.
By David Arminas March 31, 2020 Read time: 2 mins
Public financing settled for the Fehmarn Belt Fixed Link including the road and rail tunnel between Germany and Denmark (photo courtesy Femern A/S)

Public funds from the European Commission for the Fehmarn Belt tunnel between Germany and Denmark has been approved, but for less than hoped.

Danish authorities will provide €9.30 billion (US$10.7 billion) in state loans and guarantees for the first 16 years of operation, instead of €55 billion as initially decided.

The EC decision effectively gives the green light for the immersed road and rail tunnel, part of the major infrastructure project called the Fehmarn Belt Fixed Link to connect the German island of Fehmarn with the Danish island of Lolland. The tunnel will cross the 18km-wide Fehmarn Belt, or Fehmarn Strait, in the Baltic Sea.

Completion of the €8.7 billion project had been set for 2028. However, the project’s approval process has been bogged down over environmental issues, especially within the German state of Schleswig-Holstein in which the southern end of 18km immersed tunnel will surface.

Denmark is completely responsible for financing the project that will replace a ferry service. Ferry operators Scandlines and Stena Line which provide services between Europe and the Scandinavian peninsula, had been arguing that the grant level to be given to whichever company operating the toll structure is based on unrealistically high traffic volume predictions.

The Fehmarnbelt link will be user-financed. Revenues from the link will go to repay the loans that financed its construction; the same model that financed the Storebælt and Øresund links. Denmark’s Parliament will decide the tolls and the operator Femern says there likely will be discounts such as weekend tickets, as is the case on the Øresund and Storebælt links.

Meanwhile, due to the spread of the COVID-19 virus, organisers of the Fehmarnbelt Days 2020 festival conference have postponed the event that was to have taken place May 17. The Fehmarnbelt Days Secretariat said that an alternative date will be announced shortly. Since 2012 the Fehmarnbelt Days have dealt with key areas such as infrastructure, tourism, business, the labour market, transport and logistics as well as education and research.

A Rambøll-Arup-TEC consultancy joint venture is engaged in a client consultancy services contract with Femern. The joint venture has also worked on other landmark infrastructure projects, including the Øresund Tunnel in Denmark, the City Tunnel in Malmö, Sweden, the Medway Tunnel in England, as well as underground rail systems in Amsterdam and Copenhagen.

COWI is carrying out the detailed design of the tunnel (north tunnel section, south tunnel section, and ramps & portals). Meanwhile, SWECO is handling the design for the dredging and reclamation work.
 
A second framework contract, for technical support services to Femern, is being carried out by ÅF-Hansen & Henneberg.

For more information on companies in this article

Related Content

  • ERF welcomes European Commission’s consultation on charging for the use of infrastructure
    January 2, 2013
    That roads are essential for Europe’s prosperity is something no policymaker in their right mind would deny Roads have a major impact on our daily lives, as it is one of the primary means of access to employment, services, and social activities. Moreover, by linking people and other modes of transport, they are a sine qua non for achieving greater cohesion within Europe. In light of this, it is somehow hard to believe how long it has taken policymakers to wake up to an inconvenient truth. This is that chr
  • Indonesia: Jasa Marga secures four highway concession deals
    June 8, 2016
    Toll road operator Jasa Marga of Indonesia has added four contracts at a cost of nearly US$2.4 billion to its highway concession portfolio. Jasa Marga hold equity of between 55% and 65% in each project, according to a report by the Jakarta Post newspaper. The contracts are for the 40km Bitung-Manado Highway in Sulawesi, the 99km Samarinda-Balikpapan Highway in Kalimantan, the 38km Malang-Pandaan Highway in East Java and the 75km Semarang-Batang Highway in central Java. Netherlands-based Indonesia I
  • Spanish highway project to get EIB A-rated bond issue?
    April 20, 2012
    The European Investment Bank (EIB) is reported to be in talks with the sponsors of the A-66 Benavente-Zamora highway public private partnership (PPP) in Spain over a possible bond financing deal, which would see the Bank provide subordinated debt for an A-rated bond issue. The possible bond issue would be a further greenfield project to launch the European Union’s Project Bond 2020 initiative, with its initial pilot stage being managed by the EIB.
  • BICES exhibition postponed
    November 3, 2021
    The BICES construction machinery exhibition is being postponed.