The Swedish Government has commissioned an inquiry to review how investments in Sweden's military infrastructure are financed. The background is the sharply increased investment volumes within the defence sector, which according to both the Swedish Fortifications Agency (Fortifikationsverket) and the Swedish Armed Forces (Försvarsmakten) have created challenges for the planning, budgeting, and implementation of new projects.

According to a press release from the Swedish Fortifications Agency, the Ministry of Finance has tasked an investigator with analysing the current financing model and assessing whether a revised model could contribute to better financial governance and strengthened defence capability.

"The current financing model was created in a different era, before the major period of growth. The Swedish Fortifications Agency welcomes a review, so that we can deliver even better and faster results to strengthen defence capability," says Robert Ihrfors, Chief Financial Officer at the Swedish Fortifications Agency, in the agency's press release.

According to the government's terms of reference, the current model is based primarily on a government decision from 1993. Most investments are financed through loans and repaid via rents paid by, among others, the Swedish Armed Forces. The Swedish Fortifications Agency and the Swedish Armed Forces assess that the model creates uncertainty around future rental costs and makes long-term planning more difficult. The Swedish Armed Forces have also indicated that a significant portion of the agency's financial buffer must be set aside to manage future changes in rental costs.

The investigator is tasked with, among other things, analysing the advantages and disadvantages of various financing models, including increased appropriation-based funding or continued loan financing, as well as how these affect investment capacity, cost control, and defence capability. If a new model is proposed, it must function both during periods of rapid growth and during long-term asset management.

The inquiry is to be reported no later than 31 March 2027.