Ministerial Committee on Economic Policy supports refurbishment of Government Palace and modernisation of premises

In its meeting on 16 March 2022, the Ministerial Committee on Economic Policy decided to support the plan to modernise government premises.

The Government Palace and the office building at Kirkkokatu 14 are in need of refurbishment, and the plan includes the necessary refurbishment of these properties. At the same time, the courtyard wing of the Government Palace, which was built in 1900 as the Senate’s printing shop, will be replaced by a new, larger building.  The plan also includes the refurbishment of the Kirkkokatu 12 pavilion building, which is in the ‘Government Block’ (the block located between Kirkkokatu and Hallituskatu).

In this connection, the functions of the government and its ministries will be brought together in the immediate vicinity of these two blocks in what will be called the Government Campus. This will make it possible to sell some of the current ministry buildings. 

With respect to the Government Palace block, the project also includes the construction of shared meeting rooms, a significant improvement of the level of security and the construction of accessible entryways in all of buildings. The repairs and alterations will take into account the significant cultural heritage value of the blocks.

The project is being prepared in collaboration with Senate Properties and the Finnish Heritage Agency as well as with the City of Helsinki in land use planning issues. The construction of the new building requires a change to the local detailed plan. The implementation of the plan also requires a budget procedure and several readings, for example, in the Ministerial Finance Committee. 

The overall planning process examined different combinations of refurbishment and new construction, and the alternative supported by the committee best meets the objectives set for the project. 

Multiple functional benefits being sought

The project only involves the development of government premises and will not affect the administrative structures of the ministries. The project seeks to support the activities of the government and its ministries with more uniform, modern and secure premises, which would improve collaboration in the government and support the development of new ways of working in the ministries. The modernisation of the premises will also bring significant benefits for sustainable development, savings in energy consumption and reductions in emissions. In addition, indoor conditions will improve and spaces will be used more efficiently. 

The project encompasses several buildings and construction projects. The preliminary estimate of the construction and refurbishment investments is approximately EUR 290 million. It will be possible to sell some of the premises currently used by the government as part of the plan. The sales price of these premises is currently estimated at approximately EUR 140 million. The investment is estimated to increase the government’s rental expenditure by approximately EUR 9 million a year.

Construction is planned to take place in several stages. The goal is to begin construction in 2023. According to the plan, the modernisation project would be completed in 2029. The investment will have a significant employment generating impact during 2023–2029. 

The administrative blocks are historically valuable and they are at the heart of the government’s cultural heritage.  The project will help ensure that the blocks continue to be used for their historical purpose. The oldest part of the Government Palace was completed  in 1822 to house the Senate of autonomous Finland. The building was renamed the Government Palace in 1918 following Finnish independence. The previous refurbishment of the building started in 1974 and was completed in 1996.

Inquiries: Timo Lankinen, Permanent State Under-Secretary, tel. +358 295 160 300, timo.lankinen(at)vnk.fi; Heikki Hovi, Head of Unit, tel. +358 295 160 090, heikki.hovi(at)vnk.fi and Joonas Rahkola, Special Adviser to the Prime Minister in Economic Affairs, tel. +358 295 160 998, joonas.rahkola(at)vnk.fi, Prime Minister’s Office