No significant changes in government grant appropriations for private roads in 2025

Grants are primarily awarded for private road improvements that are classified as construction work. According to the Government Programme, the government grant appropriation will continue to decrease compared to previous years. However, the goal is to still secure grants for the most critical targets nationwide.

Road maintenance associations apply for government grants from the Centres for Economic Development, Transport and the Environment (ELY Centres). The Finnish Transport and Communications Agency Traficom decides on the allocation of the appropriation or part of it to competent ELY centres. Up-to-date information on the application and appropriation situation is available from the ELY Centres.
 

At the moment, grants are primarily awarded only for bridge projects

The number of grant applications now significantly exceeds the available funding and projects must be prioritised. In the future, grants will primarily be awarded to projects where road traffic is entirely blocked or at risk of being blocked due to damage. Such projects mainly include the repair of bridges and large culverts. The goal is to be able to secure funding for the most critical targets nationwide.

General principles for prioritising projects are listed on regulation level. Grants are awarded within the government grant appropriation and especially bridge reparations and projects that improve bridge load capacity and traffic safety must be taken into account.

Traficom will prepare the 2025 budget allocation in a way that takes into account the ELY Centres’ unspent funding from previous years and the amount of known funding needs in the area, particularly for bridge projects.

There will inevitably be more negative grant decisions than before. A negative grant decision does not mean that the issue is permanently rejected and the grant application can be resubmitted in the coming years.

Increased grant percentages will remain in effect until 2025

At the beginning of 2023, a government decree was issued on temporarily amending the Private Roads Decree to increase the grant percentages for the years 2023–2025.

The aim of the decree amendment was to encourage road maintenance associations to improve private roads, including the following increases to the maximum amounts of government grants
•    ordinary road improvements 50 -> 70 %
•    key bridge projects 75 -> 85 %
•    special locations (e.g. ferry sites) 80 -> 85 %

The decree amendment will remain valid for the year 2025. In this regard, it is important to note that, in practice, the increased grant percentages under the decree amendment can still be applied to grant decisions made during 2025.

Government grants for private roads

The Finnish Transport and Communications Agency Traficom develops and promotes the management of private road matters nationwide, handles expert and advisory tasks related to private roads, and decides on the allocation of the appropriation or parts of it to the competent ELY centres.