Tallinn-Helsinki tunnel would cost 9-13 bn euros: new study

  • 2015-02-17
  • from wire reports, TALLINN

Preliminary studies show a tunnel between Helsinki and Tallinn would cost €9–13bn to build and would recoup the money spent within 35–40 years, Postimees reports.

Results of a preliminary cost-benefit analysis for a tunnel connecting the Finnish and Estonian capitals were published in Helsinki yesterday, providing a basis for deeper research into the broader ramifications of the idea.

"The study says the best solution would be a railway tunnel to connect existing transport networks in both countries. The most important aspect is seen in the shortest possible travel time – to ensure maximal profitability. Also, a prerequisite for the project to be realised is a fast railway connection with Europe via Rail Baltic," said Harju County Government development and planning department adviser Kaarel Kose.

Rail Baltica will connect Tallinn with Berlin, via Riga, Kaunas and Warsaw - construction is expected to be completed by 2024. 

Advocates of a "twin city" concept says that the tunnel would provide the basis for economic growth in Finland, Estonia and the other Baltic countries. The project would have a remarkably positive effect to competitiveness of the whole region, making it more attractive for possible investors.

The preliminary cost-benefit analysis work groups involved representatives from planning and transport agencies in Finland and Estonia. It was carried out by Sweco group experts in Estonia, Finland and Sweden, assisted by the Geological Survey of Estonia, Kohateam Oy and Finantsakadeemia OÜ. The study was based on the assumption that the tunnel would be complete by the end of the 2030s.

As shown by socio-economic research, the tunnel, once completed, will be able to cover all maintenance and operation costs, as well as partially the investments made to build it. Construction costs would require 40–50 percent Estonian and Finnish state funding and EU support. A possible executing and financing model might be based on a joint Finnish-Estonian company.

The construction of the Channel Tunnel, which links England with France, and is the world's longest underwater tunnel, cost nearly twice as much as planned. It took 12 years for the company to become profitable. The tunnel, built in 1988–1994 cost a total of £9.5bn (€12.8bn), far greater than the initial estimate of £4.7bn (€6.3bn).