Key risk categories and individual risks
Infrastructure financing risks
A key element of the German Rail Reform Act is the Federal Government’s constitutional obligation to finance the infrastructure. The crucial elements are not only a sufficient amount of resources, but also the predictability of available funds. We signed the Service and Financing Agreement with the Federal Government, which covers financing of the existing network until 2013. However, in order to ensure the long-term competitiveness of the rail mode of transport, sufficient availability of funds is required to ensure systematic new construction, expansion and elimination of bottlenecks (requirement plan capital expenditures). Our mid-term corporate plans assume Federal funding will be forthcoming for the successful realization of these capital expenditures, although a corresponding agreement could not yet be concluded. Moreover, there is also the risk that the Federal Government may demand refunds due to an audit of how Federal funds were employed.
Last modified: 27.06.2011