The Act on the Taxation of Business Income and the Value Added Tax Act were amended at the start of 2018 to expand the scope of application of public private partnership projects both with respect to the parties that can apply the PPP provisions as well as the types of projects the provisions cover.
In PPP projects, the public sector acquires, for example, a piece of infrastructure through a service agreement with a private actor. The private actor is responsible for the design, construction, and maintenance of the project as well as for acquiring the necessary financing. The public client pays a service fee the amount of which usually depends on the use or usability of the object.
This model makes it possible to implements large and long-term projects as a single whole, which includes outside financing tendered by the private actor. Four road projects have been implemented using the PPP model in Finland to date: the Lahti motorway and three sections of the E18 motorway. The experiences from these projects have predominantly been good with respect to timetable, costs and quality.
With the new amendments, PPP projects will no longer be limited to the state, but will also be available to municipalities and other clients. Furthermore, the scope of application has been expanded to cover design, construction, financing and maintenance services for roads, railroads, buildings or permanent structures as well as movable property directly related thereto.
The amendments also make it possible to use the PPP model in entirely new types of projects. The provisions now also cover, for example, private company projects, such as office buildings, manufacturing facilities, hospitals and day-care centres as well as refurbishments in addition to newbuilds.
There is now a solid foundation for an increase in the number of PPP projects. According to the Government bill on the amendments, municipalities invest approximately 2 billion euros in premises and 1.5 billion euros in infrastructure annually. According to estimates, municipal PPP projects could be put into planning in the first five years at a rate of 50–500 million euros worth of signed contracts per year.
As the only Finnish law firm to have been involved in all of the PPP road projects mentioned above, Castrén & Snellman has unique expertise and experience in comprehensively handling PPP and other large-scale projects.
Latest news
Latest references
Lenders and Export Credit Agencies – EUR 514.4 million green project financing for Easpring Finland New Materials’ CAM plant
We acted as Finnish law legal adviser to the lenders and the export credit agencies in connection with the EUR 514.4 million green project financing for the development and construction of Easpring Finland New Materials Oy’s cathode active material (CAM) manufacturing plant in Kotka, Finland. The borrower, Easpring Finland New Materials Oy, is a joint venture owned by Beijing Easpring Material Technology, Finnish Minerals Group and LG Energy Solution. The financing was provided by six international commercial banks, with Société Générale acting as financial adviser and mandated lead arranger together with Natixis as co-mandated lead arranger, and DNB, ICBC, ING and Standard Chartered participating as lenders, with support from the export credit agencies Finnvera and Sinosure. The project represents a significant milestone for Finland and the European battery value chain by strengthening Europe’s domestic supply of cathode active materials, a key component in lithium-ion batteries for electric vehicles and energy storage applications. Once the first phase of the project is operational, the Kotka facility is expected to produce approximately 60,000 tonnes of cathode active material annually, making it one of the largest CAM production plants in Europe and supplying leading battery manufacturers across Europe.
Case published 21.7.2026
Delta Capacity – Acquisition of BESS Project
We acted as Finnish legal advisor to Delta Capacity in connection with its acquisition of the ready-to-build Karppio battery energy storage system (BESS) project from Helios Nordic Energy. The acquisition was made and the project will be implemented together with Strioga Family Foundation. The Karppio BESS project is located in Teuva, Finland, and has a capacity of 125 MW / 300 MWh. Delta Capacity will lead the remaining development of the project through to commissioning, planned for 2027, and will serve as long-term asset manager. Delta Capacity is a Swiss-based developer of utility scale battery storage systems. The acquisition adds to Delta Capacity’s growing Nordic portfolio.
Case published 20.7.2026
Swedbank – Refinancing of Trophi’s Finnish retail real estate portfolio
We advised Swedbank AB (publ) on the refinancing of a large Finnish retail real estate portfolio owned by Trophi’s Finnish subsidiaries. Trophi is the leading Nordic real estate company focusing on grocery anchored retail properties, with 278 properties across Sweden and Finland. Finland is a market that continues to develop and is also strategically important for Trophi, accounting for approximately 30% of Trophi’s letting and property value.
Case published 17.7.2026
HANZA – Acquisition of Fortaco Finland’s heavy mechanics and assembly business
We are acting as Finnish legal advisor to HANZA in connection with its acquisition of Fortaco Finland’s heavy mechanics and assembly business. The transaction is structured as a combined asset and share acquisition and includes Fortaco Finland’s heavy mechanics and assembly operations in Finland, as well as shares in two Estonian and two Polish subsidiaries. The transaction is expected to close during the fourth quarter of 2026, subject to customary closing conditions, including regulatory approvals. Founded in 2008, HANZA is a Swedish mechanical engineering and electronics contract manufacturing company listed on the Nasdaq Stockholm main list. HANZA has approximately 5,000 employees and annual sales of SEK 10 billion. We advise HANZA on this transaction in collaboration with the Swedish law firm Lindahl.
Case published 15.7.2026