Infrastructure financing
At the beginning of 2020, we concluded an agreement with the Federal Government that sets out the financing of the existing network until 2029. The LuFV III and the associated long-term assurance of infrastructure quality and availability improve the attractiveness of rail as a mode of transport, which in turn results in more traffic and therefore higher revenues for infrastructure companies. Risks result from a potential failure to achieve the contractual objectives set out in the LuFV and from a possible reclaim by the Federal Government following audits of applications of funds for the intended purposes. Due to the sharply increasing construction costs, the volume targets of the LuFV are no longer achievable with the current budget approach. New negotiations with the Federal Government have been initiated.
The economic sustainability of capital expenditures or financial contributions to projects funded with DB funds is essential if we are to ensure DB Group’s ability to invest in the long term.
In addition, the budgetary resources of the Federal Government in particular are of decisive relevance for the expansion of infrastructure capacity in order to implement a traffic shift in Germany. In order to implement Germany in sync (Deutschland-Takt), there is a need for extensive infrastructure expansion that goes significantly beyond the previous Federal Transport Infrastructure Plan. We therefore assume that a significant increase in funds for infrastructure expansion from the Federal Government is required. If the Federal funds for infrastructure are not increased significantly, there would be considerable risks for network quality, transport performance and economic development.
