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Business case for Fehmarnbelt tunnel stronger than previously estimated

Plans to construct a tunnel link between Denmark and Germany are stronger than previously thought following new analysis by project promoter Femern.

New estimates suggest that the Fehmarnbelt link between Rødby and Puttgarden will be paid for in 32 year, rather than the 39 years originally forecast.

“We welcome the fact that the finances of the Fehmarnbelt project are so strong and that we can hold to our principle of being cautious in the assumptions that underpin the economics of the project,” said Femern CEO Claus Baunkjær.

At present, the new financial analysis is based on a previous construction cost estimate for the tunnel link, which is €6.2bn (£4.91bn) at 2014 prices. This is equivalent to the estimated €5.5bn (£4.4bn) at 2008 prices, which has been the basis so far. Since 2009, Femern has been working in parallel on project preparations in both Denmark and Germany and with the tender processes.

“This means that, in January, we can have a significant proportion of the accurate tender figures from the contractors prior to the Construction Act being submitted to the Folketing (the Danish parliament) in February 2015. In fact, 75 to 80% of the construction budget in the coming Construction Act will be based on real price quotes from contractors. This is completely new for state construction projects, and it helps to give the Folketing greater reassurance over the budget in the coming legislative process,” said Baunkjær.

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