Mega Transport Project financing in Sweden and Denmark - Does financing outside the normal channels have sustainability implications?

Author(s): Pettersson, Fredrik
All authors:
Petersson, F., Sundberg, I., Khan, J.
Host organisation: CoE London, UK
Country: Denmark, Sweden
Publication year: 2010
Published in:
Special session, 12th WCTR Conference, 11-15 July, Lisbon, Portugal
Research theme: Policy and Planning
infrastructure, financing, sustainability
Conference proceedings
Financing mega transport projects outside the normal state budget channels have become increasingly common in Sweden and Denmark during the last two decades. The paper explores the idea that these alternative financing models may affect the transition towards a more sustainable transport system. The financing models of three different projects are examined: The Oresund Link based on user fee financing; The Arlanda Rail Link implemented as a Build Operate Transfer Public Private Partnership and The Metro financed by land sales and user fees. The analysis shows that there are mechanisms in the three financing models under study that have important implications, positive as well as negative, from a sustainability perspective. We argue the sustainability implications can be conceptualised as relating to environmental as well as social and economic issues and that the mechanisms of the financing models entail positive as well as negative sustainability implications.
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