Economy
September 23, 2024
Border
Less than
min read

Lelylijn to Cost €10bn More Than Expected but Promises Homes and Jobs

The cost of constructing the Lelylijn railway, a major infrastructure project in the Netherlands, has surged to €13.8 billion, far exceeding the original budget of €3 billion. Despite the increase, proponents argue that the railway will bring significant economic benefits, including 100,000 new homes, 70,000 jobs, and reduced travel time between Groningen and Amsterdam.
Lelylijn to Cost €10bn More Than Expected but Promises Homes and Jobs
Dmitrii Eliusee - Unsplash

The Lelylijn railway project, which aims to connect the northern provinces of the Netherlands with the rest of the country, is now projected to cost €13.8 billion—more than €10 billion higher than initially estimated. While the government had reserved €3 billion for the project, additional funding will be sought from European and regional sources. Despite the steep rise in costs, Johan Hamster, a deputy of the Provincial States of Groningen, expressed optimism about reaching a financial agreement with the government.

“These were not entirely unexpected amounts, even for the new government,” Hamster said, emphasizing that the project would deliver long-term benefits for the economy and society. “We are talking about 100,000 extra homes, 70,000 extra jobs, and a travel time reduction of 45 minutes between Groningen and Amsterdam. These are numbers that make the investment worthwhile.”

The Lelylijn is expected to address multiple challenges facing the Netherlands, including housing shortages and job creation, while also improving connectivity between the northern regions and the country’s capital. Hamster pointed out that the increased costs, while significant, should be seen as an investment in "broad prosperity," which will benefit the state and society in the long run.

Hamster also stressed that the discussion about the rising costs should not overshadow the project's potential benefits. “If we had approached the Afsluitdijk [a major dam and causeway project] in the same way, it would never have been built,” he remarked.

The next steps in the project include a more technical elaboration phase, following the completed exploration phase. At this stage, the final cost will be determined, but officials acknowledge that the final figure will likely align with the current estimates. Despite the financial challenges, Hamster remains confident that the project will move forward, noting that it aligns with the government’s commitment to infrastructure and regional development.

The Lelylijn is seen as a critical part of the Netherlands' future infrastructure, and its completion is expected to contribute significantly to solving the country’s housing and employment issues while promoting regional economic growth.

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