The bill means that Femern A/S will be authorised to construct and operate an immersed tunnel from Rødby on Lolland to Puttgarden on Fehmarn, Germany. The bill will also give authority to A/S Femern Landanlæg to establish and operate the upgrading of the Danish landworks, which primarily relate to an upgrade of the railway from Ringsted to Holeby immediately north of Rødby, down to the fixed link across the Fehmarbelt. With the bill, the Transport Minister may stipulate that operational and owner tasks should be entrusted to Rail Net Denmark and the Danish Road Directorate, which is expected to happen in respect of the landworks.
Based on the submitted priced bids for the four tunnel contracts, Femern A/S has set a construction budget for the coast-coast link of DKK 54.9 billion (2014 prices) including reserves of DKK 3.7 billion. The bids are, however, being negotiated with the consortia in order to reduce prices. The revised bids will be presented to the political parties behind the political agreement on a fixed link across the Fehmarnbelt immediately after the summer holidays before the company can enter into contracts with the winning consortia.
The budget for A/S Femern Landanlæg’s construction activities is set at DKK 9.5 billion (2014 prices) including 30 per cent reserves.
The companies’ capital investments are financed through State-guaranteed loans and subsidies from the EU. The loans will be repaid with revenue from users of the fixed link and the Danish railway land facilities. Based on the current construction budgets, the repayment period for the entire project is calculated to be 39 years.
The bill also contains an abolition of the special tax conditions that currently apply to the Sund & Bælt group as a result of the Act on Sund & Bælt. These are special rules on loss carryforwards, special depreciation rules of the Act on Sund & Bælt Holding A/S and specific rules in the Planning Act on tax exemption on free transfer of loans between the companies. Sund & Bælt Holding A/S and its subsidiaries, including Femern A/S, will then, without exception, be taxed according to the rules applicable to other public limited companies. The abolition of the special rules is deemed not to significantly affect the Group’s economy.
The bill can be read at the Danish Parliament website www.ft.dk