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Report about the Danish Ministry of Transport and Housing's budgeting of road projects

The report concerns 32 road projects completed by the Danish Road Directorate after the implementation of a new capital budgeting model. 

The purpose of the study is therefore to assess, whether the Ministry of Transport, including the Road Directorate, has budgeted the road projects in a satisfactory manner.

It is Rigsrevisionen's assessment that it is not satisfactory that the Ministry of Transport, including the Road Directorate, has overestimated the final costs of 25 out of 32 road projects by a total of DKK 3.9 billion, corresponding to approx. 11.3% of the total funding granted.  In addition, the 32 projects have unused reserves of approx. DKK 7.7 billion. These reserves have been allocated as part of the New Capital Budgeting model. This means that the costs of the projects were in total approx. DKK 11.6 billion lower than estimated, and made up approx. 33% of the total allocated funds. The Road Directorate has only to a limited extent worked out analyses that explain the lower cost level. The consequence is that unused funds risk being tied up in road projects that do not require the resources instead of going into future projects.

Rigsrevisionen initiated the study in September 2018.

Last updated on 12 November 2019

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