Helsinki and state still want to build Music Centre

YLE pulls out of construction - Radio Symphony Orchestra to be tenant

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The executive of the Helsinki Music Centre on Friday rejected the only tender submitted for the construction of the planned building, and the Finnish Broadcasting Company (YLE) pulled out of the construction project. However, the two decisions are not leading to the cancellation of the project because the City of Helsinki and the Finnish state are still backing it.
      YLE, and particularly the broadcaster's Radio Symphony Orchestra, still want to become a tenant of the building in 2011.
      The joint stock property company established for the building of the Music Centre plans to complete the project step by step.
      "We will continue the construction the same way as up to now; we will divide the main construction project into pieces as well", say Tuomo Hahl, chairman of the construction committee of Senate Properties, and Harri Kauppinen, head of development for the City of Helsinki.
     
The separate projects will be open for tenders separately, and the goal is to have the building built at a cost of EUR 108 million.
      Slightly helping the financial plight of the project is a donation of EUR 1 million from the Pro Musica Foundation. The foundation was established by the Kivekäs family in 1974 for the purpose of supporting art music.
     
The board of the Helsinki Music Centre turned down the only response to their bid for tenders as too expensive. The construction company SRV asked for EUR 124 million for the whole project, which would have raised the total price of the project to EUR 180 million.
      Chairman of the Board Juha Lemström notes that the withdrawal of YLE from the project means that a new partner will have to be found. "Another possibility is for the state and the City of Helsinki to increase their stakes in the company."
      The share of state financing now stands at nearly 48 per cent, and the City of Helsinki is providing nearly 26 per cent.
     
"The City of Helsinki is staying with the project according to agreement, and wants to achieve a high-quality, reasonably priced music centre. There is no intention to build a class B music building", said Helsinki Mayor Jussi Pajunen.
      Pajunen is relieved that the uncertainty about the YLE role, which has continued since the summer, is now over. He feels that it is a step forward that YLE said that it would become a tenant of the building.
      Pajunen feels that it is now the task of Senate Properties to find an investor to replace YLE. He believes that a new partner will be found. Helsinki City Board Chairwoman Suvi Rihtniemi (Nat. Coalition Party) hopes that a new partner will be forthcoming: "We can't keep looking at a hole in the ground for very long."
     
The Ministry of Education has expressed confidence that the centre will be built, and that the Sibelius Academy will get the new facilities that it needs according to original plans.
      "Now we need to find out if the state and Helsinki can bring the project to a conclusion on their own. If this happens, it would require a new government decision, and the bringing of the matter before the ministerial committee on economic policy", says top Ministry of Education civil servant Sakari Karjalainen.
      The Helsinki City Council will also have to revisit the issue, if the costs appear to rise over EUR 108 million.
      Minister of Education Sari Sarkomaa (Nat. Coalition Party) and Minister of Finance Jyrki Katainen (Nat. Coalition Party) did not want to take a stand on the matter on Friday. Sarkomaa and her aides will discuss the issue on Monday next week.
     
YLE rejected the project because Director General Mikael Jungner felt that the cost would jeopardise the financial health of YLE.
      YLE is ready to pay no more than EUR 35 million for the project, but its share would have risen to about EUR 50 million if the SRV tender had been approved.
      The Music Centre is to be built in the centre of Helsinki near the House of Parliament across the main thoroughfare Mannerheimintie. After a protracted political battle, the old railway warehouses were demolished to make way for the new building.


Previously in HS International Edition:
  BREAKING NEWS: Finnish Broadcasting Company pulls out of Music Centre construction (2.11.2007)
  Helsinki Music Centre may be delayed by lack of interest from construction companies (30.10.2007)
  Demolition of old Helsinki railway storehouses to begin in May (21.3.2006)
  Töölönlahti zoning plan gets approval - green light for music centre (30.3.2004)
  Top names in classical music clash over location of planned music centre (19.12.2001)
  Costs of Helsinki´s new Music House likely to increase as contractors´ bids are rejected (3.5.2007)
  Criminal police hear several people over arson of railway warehouses (9.5.2006)
  Four-day party bids farewell to "Makasiinit" (26.3.2006)

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