Massive financing shortfalls jeopardize timely completion of highway initiatives, totalling billions of dollars.
The Federal Highway Company's financial and implementation plan for the years 2025-2029 has put the country in a challenging position, as reported by the newspaper Bild, citing ministry documents. The current situation has led to a halt in issuing new construction permits for "necessary projects" due to a significant financial gap.
The financing of road and railway construction projects from 2025 to 2029 primarily involves the German federal government. The government has established a debt-financed special infrastructure fund (Sondervermögen Infrastruktur und Klimaneutralität, SVIK) amounting to 500 billion euros. Of this, 100 billion euros have been specifically allocated to the states for infrastructure investments.
The federal government works in collaboration with states and municipalities, who receive funds from this special fund and regionalization funds for public transport. Financial responsibility and implementation may also involve state-level companies and local authorities.
However, the ministry has so far failed to secure additional billions for its demands in the federal government, which relate to the budgets for 2025 and 2026 as well as the financial planning up to 2029. This underfunding is not only affecting highway projects, but also other investments such as rest areas.
The shortage of funds for maintenance, construction, and planning on federal roads and highways by 2029 is approximately 15 billion euros. The Federal Ministry of Transport has also highlighted a lack of funds for new and expansion projects on the railway in the coming years.
The financial gap also affects the railway sector, but specific details are not provided in this paragraph. The estimated financial gap for highway projects by 2029 is 5.5 billion euros. The expansion and new construction of federal highways and federal roads require "significant additional investments" to implement planned measures by the Federal Highway Company.
A total of 74 highway projects are affected, mainly involving expansion and some new construction. The current financial predicament poses a significant challenge for Germany's infrastructure development in the coming years.
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