The Uppsala light railway will be financed in three different ways.
- Environmental Agreement with the Swedish State
A light railway is a large investment but not something that a city or region need pay entirely by themselves. The state grants financial support to cover up to half of the construction costs.
- Land value capture around the new railway
An expansion of the public transport network such as the light railway makes the surrounding land more attractive and hence increases its value. To cover some of their costs for the expansion, the municipality can allow property owners to co-finance the new development. There is legislation enabling the municipality to involve forward-looking property owners and allow them to contribute to investments.
- The city and the region are investing
The city council and county council are responsible for funding decisions. The final allocation of expenditure and responsibility between the region and the city will be made in conjunction with the implementing decision in 2021.