Pension fund cautious about 500-million-euro bridge project to Saaremaa
Commenting on the idea that Estonian pension funds could invest into the ambitious project of building a bridge from mainland Estonia to the country’s largest island, Swedish Swedbank has expressed caution.
The head of Swedbank-administered pension funds in Estonia, Kristjan Tamla was cited by the Estonian public broadcaster ERR on Tuesday, January 16, as evaluating: «With such projects the construction risk, the development risk is likely to be the thing pension funds don’t want to take on».
Project initiator Raivo Hein has commented he understands the funds’ caution, but expressed his belief they could be convinced once the project is ready in detail: «When we get to the point where we have a very specific plan, for which we already have the financing models, by the way, then things will be different.»
The revenue of the massive construction project are planned to come from fees people pay to cross the bridge, which, Hein suggested, would be in the same price range as a current ferry ticket, but it could be cheaper to local residents if the Estonian government would step in with a subsidy.