Financials

The metro is being built westward in two phases – Länsimetro Oy owns the rail infrastructure and the stations

The construction of the West Metro is proceeding in two phases. The Matinkylä–Kivenlahti section, consisting of seven kilometres of rail line and five new stations, is currently under construction, as commissioned by Länsimetro Oy. An underground metro depot is also being built in Sammalvuori to serve the needs of the traffic operator. Phase I, i.e. the Ruoholahti–Matinkylä section, was completed in 2017.

A metro is a major investment that brings vitality to communities and enables new housing and jobs in an eco-friendly way. The metro is a sustainable mode of public transport, and metro stations are planned with sustainability and attractiveness in mind. Metros increase the appeal of their catchment area as a location for businesses and other types of operations, as well as for living. To take an example, the insurance company Lähi-Tapiola has invested half a billion euros in the Tapiola district near one of the metro stations.

Länsimetro Oy is the asset owner of West Metro’s first phase and covers its ownership-related maintenance and debt-servicing costs using charges collected from its owners, i.e. the cities of Espoo and Helsinki. The section was handed over to the operator HKL in October 2017. HKL receives compensation from HSL for operating the metro traffic. Länsimetro Oy’s permanent business activities are financed with charges collected from its owners, and construction activities are financed with financing secured by its owners. In 2020, EUR 3.0 million in administrative charges and EUR 28.9 million in maintenance charges were collected. Administrative charges collected from the owners are used to cover the company’s permanent operations. The financial stability of the company’s operations depends on the reliable planning of operations financed with charges and on forward-looking financing of construction operations. You can also read about Länsimetro Oy’s group structure (in Finnish) and decision making.

Länsimetro Oy financial statements 2018 on the City of Espoo’s website (in Finnish)

Matinkylä–Kivenlahti construction project cost estimate

Ruoholahti–Matinkylä construction project cost estimate

BUDGET

EUR 1,000 2018 

actual

2019 

actual

2020 

forecast

2021 

budget

2022

forecast

2023

forecast

Maintenance charges 18,764 16,723 13,623 20,287 22,369 28,868
Administrative charges 2,806 2,553 2,085 2,655 2,785 3,040
Financing charges 32,513 39,697 49,490 57,783 71,843 85,884
Charges in total 54,083 58,973 65,199 80,724 96,997 117,792
Operating income 971 1,232 906 1,454 2,642 6,927
Maintenance expenses -17,019 -18,271 – 19,018 – 21,741 – 24,045 -31,116
Administrative expenses – 2,156 – 2,268 – 2,445 – 2,655 – 2,785 -3,040
Deprectiation and amortization – 31,072 – 31,403 – 31,503 – 31,652 – 37,515 -65,084
Financing expenses – 15,317 – 16,011 – 15,589 – 15,463 – 19,522 -30,274
Funds 0 – 3,168 – 8,286 0
Deferred taxes 2,102 1,521 661 0 – 783 798
Profit/loss of the period – 8,410 – 6,082 -1,789 7,500 6,704 -3,996