Swedish Fortifications Agency

The Swedish Fortifications Agency (Swedish: Fortifikationsverket, FortV) is a Swedish government agency under the Ministry of Finance , tasked with managing government-owned defense-related buildings and land. The agency functions as the landlord for the Swedish Armed Forces (Försvarsmakten), managing various types of military installations.[7][8] The SFA is one of the largest holders of real estate in Sweden.[7]

Swedish Fortifications Agency
Fortifikationsverket
The coat of arms of the Swedish Fortifications Agency
Agency overview
Formed1994[1]
Preceding agency
  • Fortifikationsförvaltningen (1948-1994)[1]
Jurisdiction Government of Sweden
HeadquartersKungsgatan 43,
631 89 Eskilstuna[2]
Employees640 [3]
Annual budgetSelf-sufficient through fees.[4]
Revenue 3.0 billion SEK(2008)[5]
Minister responsible
Agency executive
Parent agencyMinistry of Finance[7]
Websitewww.fortifikationsverket.se

Function in the government

The formation of the SFA in 1994 was part of the Swedish government effort to increase the cost-efficiency of government real estate usage through a system of internal rent, which was meant to emulate market-like conditions.[9] The main purpose with the reform was to create economic incentives for the authorities in the public sector to economise on premises.[10] In the defense sector, the real estate holdings were transferred from the Swedish Armed Forces — the user of the real estate — to the SFA; with the Swedish Armed Forces remaining in the estate as a tenant.[9]

Currently, the SFA acts as landlord for several Swedish government agencies in the defense sector.[11] The main tenant is the Swedish Armed Forces, which in 2007 was the source of over 90% of the SFA:s revenue.[11]

Economy

The SFA does not receive an allowance from the government budget.[4] Instead, it covers its expenses by charging rent for the real estate it leases.[4] In 2008, the agency's revenue was 3.0 billion SEK, and its net income 67 million SEK.[5] The rent is adjusted so that the net income — which goes into the state treasury — conforms to a predefined level of return on equity, as set by the Ministry of Finance.[12] To finance investments, the SFA borrows money from the National Debt Office (Riksgälden), which acts as the internal bank of the government.[13]

Personnel

The SFA employed 689 people in 2008.[3] The majority of the employees work on a local level in real estate units linked to garrisons,[14] where employees work in areas such as project management, property development and maintenance services.[15] At the regional and national level, employees work in real estate purchasing and sales, defense facility development, and various management functions.[15] The SFA considers its core competencies to be security and protective technology.[16] The agency has stated that it aims to increase the amount of outsourcing, and as an experiment in 2006, it outsourced the property maintenance of two garrisons.[17]

Karlberg Palace in Solna, Stockholm — which houses the Military Academy Karlberg — is one of the properties managed by the SFA.[18]

Real estate stock

In 2008, the book value of the government real estate stock managed by the SFA was 10.1 billion SEK,[19] largely consisting of depots, garrisons, training facilities, offices, and proving grounds.[20] In 2007, the total real estate stock included:[21]

  • 8 000 buildings
  • 3.3 million square meters of open space facilities
  • 7 700 defense facilities
  • 11 airfields
  • 380 000 hectares of land, including:
  • 100 000 hectares of forest

Notes
  1. Swedish Fortifications Agency: "Archived copy". Archived from the original on 2007-07-08. Retrieved 2009-07-11.CS1 maint: archived copy as title (link)
  2. "Kontakt" (in Swedish). Swedish Fortification Agency. Retrieved 2019-07-28.
  3. "Om oss" (in Swedish). Swedish Fortification Agency. Retrieved 2019-07-28.
  4. Ministry of Finance 2009, p. 5.
  5. Swedish Fortifications Agency 2008, p. 38.
  6. "Fortifikationsverkets styrelse" (in Swedish). Swedish Fortifications Agency. Retrieved 2019-07-28.
  7. Ministry of Finance 2009: "Archived copy". Archived from the original on 2009-06-07. Retrieved 2009-07-11.CS1 maint: archived copy as title (link)
  8. Holmström 2008
  9. Swedish Agency for Public Management 2004, p. 5-6
  10. Lind 2005
  11. Swedish Fortifications Agency 2007, p. 12.
  12. Ministry of Finance 2009, p. 1.
  13. Ministry of Finance 2003
  14. Swedish Fortifications Agency 2008, p. 7.
  15. Swedish Fortifications Agency: "Archived copy". Archived from the original on 2009-08-28. Retrieved 2009-07-11.CS1 maint: archived copy as title (link)
  16. Swedish Fortifications Agency 2008, p. 5.
  17. Swedish Fortifications Agency 2007, p. 8.
  18. Swedish Fortifications Agency: "Archived copy". Archived from the original on 2008-04-22. Retrieved 2009-07-19.CS1 maint: archived copy as title (link)
  19. Swedish Fortifications Agency, p. 39.
  20. Swedish Fortifications Agency 2007, pp. 18, 20.
  21. Swedish Fortifications Agency "Archived copy". Archived from the original on 2007-07-08. Retrieved 2009-07-11.CS1 maint: archived copy as title (link)
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References
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