Turku One Hour Train Ltd has five ongoing railway plans, all of which carry out environmental impact assessments and planning in accordance with the guidelines of the Finnish Transport Infrastructure Agency. The railway plans are divided as follows: RaS1 Espoo-Lohja, RaS2 Lohja-Salo, RaS3 Salo-Hajala, RaS4 Hajala-Nunna and RaS5 Nunna-Kupittaa.

Turun Tuntijuna Oy obtains expert assistance for both the preparation of the profitability calculation and other financial analyses concerning the project.

The project has previously been under the competence of the Finnish Transport Infrastructure Agency, and the project was transferred to Turku One Hour Train Ltd in autumn 2021. Various studies on the project were commissioned in the previous planning phase.

The conclusion of the project evaluation commissioned by the Finnish Transport Infrastructure Agency in 2020 was that the project should be phased into different entities. The options presented in the project evaluation did not exceed socio-economic break-even point 1. The cost-benefit ratio of the project was 0.44, but the calculation is based on the state's updated project evaluation guidelines, which do not take into account the project company's implementation models. For this reason, the project company can prepare a cost-benefit analysis model that takes into account the benefits and costs of the project in more detail.

More extensively, the company has commissioned regional economic impact assessments and sought to find various CO2 emission reduction methods that affect socio-economic benefits. As one of the innovative means of the design phase, the project has introduced a mass balance management programme.

The project's cost estimate is based on the quantity calculation produced in the project, which will be specified as the plans progress. The raw cost estimate has not yet examined the range of material prices. The company will refine the cost estimate and prepare a sensitivity analysis of it.

Turku One Hour Train Ltd requests an offer for a project evaluation of the company's project option. The selected expert will support the company in the preparation of the CEF application for EU support and other financial and decision-making reviews with regard to the calculation of project profitability and its technical assumptions. The project's cost-benefit analysis must be ready for the needs of the CEF Transport 2023 call. In project appraisal, it is necessary to look at the project from an international perspective using parameters used in the EU rather than national parameters. The project's cost or revenue structure should also be examined from the perspective of how the project's cost-benefit ratio could be improved.

Project evaluation should examine implementation critically: whether the project needs to be pieced together during the implementation phase and whether the revenue and expense flows of the operating business should be included in the assessment in order to improve profitability. The position should also take into account the potential impact of identified economic factors on project profitability (e.g. tax or employment impact, impact of MaaS services).

The expert service for the position includes:

1. Preparation of a project cost estimate for the needs of the company's CEF Transport 2023 EU grant application:

o Preparation of the cost-benefit ratio model and calculation of the cost-of-benefit ratio (HK ratio)

o Optimisation of the HK ratio, including in particular the following examinations: estimation of the project's investment cost (base case, range) and identification of different savings targets and verification of the amounts of savings and analysis of their uncertainties; Partial review of the project (in particular the division of the project into sub-packages) and identification and calculation of the profitability effects of the phased approach (from the perspective of benefits and costs); Review and optimization of different traffic concepts from the point of view of HK ratio; Risk and sensitivity assessments.

o Estimation of the cost structure and revenues of the operating phase

o Comment! The preliminary results of the optimised cost estimates must be available by 10.10.2023. The final calculations that meet the formal requirements of the EU grant application must be ready and available by 31.10.2023.

2. Critical examination of the content of studies from previous planning phases

3. In addition:

o Cash flow analysis of project revenues and costs

o Assessment of wider economic impacts

o Consideration of financial aspects and requirements

o Reporting

o Working with side consultants acquired by the Company and coordinating work

o Other expert tasks of the project according to the client's needs