‘Interest snowball’ fears deepen over Oosterweel funding

Concerns are growing within the Flemish government over the financing of the Oosterweel infrastructure project in Antwerp. Coalition parties CD&V and Vooruit warn of a mounting “interest snowball”.

During a parliamentary session, Christian Democratic party CD&V’s Peter Van Rompuy said the project’s funding model risks spiralling costs due to rising interest. He warned that while the project may be completed successfully, it could leave behind a “budgetary time bomb”.

The concerns follow a recent report by the Belgian Court of Audit, which concluded that the project cannot be fully repaid through toll revenues alone. Construction costs have surged in recent years, partly due to the clean-up of PFAS-contaminated soil, which added €1.65 billion.

To cover this, the Flemish government issued a subordinated loan that will only be repaid after 2083. The loan carries a 5% interest rate, compounded annually, meaning the debt could grow to around €27 billion by the time repayment begins.

Socialist party Vooruit’s MP, Stephanie Vanden Eede, said there is still no clear picture of the final cost. “We are building, but we do not know where we will end up financially,” she said.

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Mobility minister Annick De Ridder acknowledged the concerns, noting she had wanted to include the PFAS clean-up costs in the regular Flemish budget. However, she said this proved politically unfeasible.

A full review of the financial model is planned by 2035, after the project is expected to be completed. By then, actual traffic levels, costs and toll revenues should be clearer. The minister said possible solutions to the growing debt include changing how interest is calculated or converting the loan into government equity.

Opposition parties remain sceptical. Bogdan Vanden Berghe of Groen (Green) argued that the only real solution is to bring the costs into the public budget, unless toll charges are significantly increased.

The Oosterweel project, a major road scheme around Antwerp, is expected to open in stages from 2030.

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