Some €280 billion needed for infrastructure; Years of road closures, traffic jams loom

The Netherlands will have to double its investment budget to approximately €280 billion to get Dutch infrastructure in order, according to a study by consultancy firm BCG. If the government doesn’t step up, motorists in many parts of the country will face prolonged road closures and traffic jams in years to come, the Association of Dutch Municipalities (VNG) and the Introprovincial Consultation (IPO) warn based on a separate study.

The consultancy firm BCG argued for “a doubling of the current investment space” for infrastructure by 2040, speaking of an amount of approximately €280 billion, the Financieele Dagblad reported. This should be enough to tackle deferred maintenance to infrastructure, from roads to data connections, and improve them to keep pace with new technological developments and requirements.

BCG argued that the discussion regarding the state of infrastructure is currently too focused on catching up on deferred maintenance. This is essential, the consultancy firm acknowledged, but more than just strengthening weak points will be needed if the Netherlands wants to continue growing its economy.

Even just keeping the existing infrastructure from falling apart will already require extra investment from the national government, the VNG and IPO warned, based on a separate study by Arcadis and Berenschot, conducted in collaboration with the Ministry of Infrastructure and Water Management, AD reported

Much of Dutch infrastructure dates from the post-World War II period and is simply reaching the end of its lifespan. According to the study, the costs of repairs up to and including 2030 are already 30 percent higher than budgeted. Municipalities and provinces currently spend well over €4 billion per year on management, maintenance, and renewal. To keep covering renewal costs, that budget will have to increase by €2.1 billion by the end of this century, excluding price increases.

“Without extra money, there is a risk of more and prolonged road closures,” warned Deputy Harry van der Maas of Zeeland, also chairman of the IPO Accessibility and Infrastructure Committee. Municipal and provincial funds are not increasing sufficiently to keep up with the repair work. “We face an enormous challenge to keep the Netherlands accessible. That also requires sufficient funds.”

“There is an enormous amount of overdue maintenance on municipal infrastructure,” Jan Burgsteden, an alderman in Meijerstad and a member of the VNG Committee on Spatial Planning, Housing, and Mobility, told AD. “Municipalities fear major inconvenience for residents and businesses due to prolonged or even permanent closures of roads, bridges, and tunnels.”

It’s not just more traffic jams at stake, Burgsteden said. “Roads must remain safe, and schools, hospitals, and shops must remain accessible. Employees must be able to get to work without major delays.”