Investments

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 2018, EUR 2.8 million in administrative charges and EUR 18.8 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 2019

EUR 1,000 2018A 2019B 2020 2021 2022
Maintenance charges 18,764 16,723 24,595 24,935 25,275
Administrative charges 2,806 2,553 2,920 2,965 3,010
Financing charges 32,513 39,697 46,500 52,300 56,700
Charges in total 54,083 58,973 74,015 80,200 84,985
Operating income 875 1,245 1,265 1,285 1,305
Maintenance expenses – 16,939 – 21,320 – 21,600 – 21,900 – 22,200
Administrative expenses – 2,140 – 2,875 – 2,920 – 2,965 – 3,010
Depreciation and amortization – 31,072 – 31,776 – 31,820 – 31,870 – 31,920
Financing expenses – 15,317 – 16,350 – 16,600 – 16,700 – 16,700
Funds – 2,340 – 4,320 – 4,380
Deferred taxes + 2,875 + 2,421 – 746 – 1,616
Profit/loss for the period – 7,636 – 9,682 0 2,984 6,464