Azernews.Az

By Bloomberg

Sweden’s Social Democratic government could look at inviting private capital to help fund its push to build high-speed railways and other large-scale projects, according to Infrastructure Minister Anna Johansson.

“We’re open to looking at different forms of PPP solutions, we’re open to looking at partial-loan financing, possibly, and we’re open to looking at different forms of co- financing,” she said in an interview Sunday.

After 30 years of stagnation, the Social Democrats are looking to boost public investments to help drive down unemployment in the largest Nordic economy. The government is also looking to involve state pension funds in the investments.

“That single projects can be financed by loans, that’s true, but the high-speed railways are more than just a single project as we are talking about such enormous sums, 140-160 billion kronor,” she said. “There’s no final plan, but that’s the kind of cost that’s expected.”

Talks with different stakeholders on the high-speed railways are expected to continue until the end of 2017. The rail links are planned to run between Sweden’s three biggest cities.

Earlier big public-private partnership projects in Sweden include New Karolinska Hospital in Solna and the high-speed train to Arlanda airport.

Ulf Kristersson, economic policy spokesman for Sweden’s biggest opposition party the Moderates, said by phone June 1 that he’s “uncertain” about whether the costs for the state would be any lower if there, for example, was a PPP.

“You need to be incredibly careful and you need to study earlier PPP projects much more on what could be the advantages and risks for public finances,” Kristersson said. “I have so far not been convinced by enthusiasts who have said that this is a good idea.”