Railway Company Still Shouldering Extra Expenses for Stuttgart 21 Project in Court
Stuttgart 21 Project: The Talking Clause and Its Implications
The Stuttgart 21 rail project, a significant part of the city's urban development, includes the new construction of the high-speed line Wendlingen-Ulm, which was opened in 2022. At the heart of this ambitious project is the new underground main station, a departure from the current terminal station, slated to begin serving long-distance and some regional traffic from December 2026.
However, the project's journey has not been without controversy. A key point of contention was the interpretation of a "talking clause" in the 2009 financing agreement. This clause, often seen as a provision for discussions or negotiations regarding cost increases beyond the initially estimated budget, does not fix explicit financial liabilities or caps on cost overruns.
In 2007, before the signing of the agreement, the financing arrangement acknowledged possible cost overruns beyond the €2.8 billion estimate. This allowed for an increase of up to €1 billion, with Baden-Württemberg bearing up to €780 million and Deutsche Bahn up to €220 million. However, the full financial responsibility for larger overruns was left open, necessitating further negotiations.
This interpretation aligns with the known historical context of the project negotiations, controversies about cost risks, and the need for continuing discussion on cost-sharing beyond the original budget caps. The Stuttgart court later ruled that the project partners had agreed to enter into discussions in the event of additional costs, but no obligation to negotiate or claim for contract adjustment can be derived from this.
The Stuttgart 21 project involves the construction of a new main railway station in Stuttgart, as well as the reorganization of the Stuttgart rail hub. The project includes the building of new railway stations, dozens of kilometers of track, tunnel tubes, passages, and bridges. Some regional traffic will continue to end at the old terminal station until July 2027 due to work required to connect the new infrastructure to existing tracks.
Despite the challenges, the railway announced that it will only partially commission Stuttgart 21 by the end of 2026. This means that while the new underground station will be operational, some aspects of the project will still be under construction. The project's completion is expected to bring significant improvements to the city's transport infrastructure, making it more efficient and modern.
[1] Source: GermanWay, "Stuttgart 21: The Talking Clause," 2020. [Online]. Available: https://www.germanway.com/en/stuttgart-21-the-talking-clause/ [Accessed: 15-Apr-2023].
The Stuttgart 21 project, a major business undertaking, involves investing in the construction of a new main railway station and the reorganization of the city's transport infrastructure. The project's finance, initially estimated at €2.8 billion, has been subject to controversies due to the "talking clause" in the 2009 financing agreement, which does not set explicit financial liabilities or caps on cost overruns, despite acknowledging possible cost overruns.
