rssNov 11, 2026, 13:38

New IT crisis at municipality over ground lease could cost city 20 to 40 million

Amsterdam faces a potential cost of 20 to 40 million euros due to critical failures and long-term delays in its ground lease IT systems. The city's outdated Hermes system has reached a breaking point while its planned replacement, NISE, has suffered repeated delays, leading to significant security risks and administrative challenges.

Amsterdam is facing a severe financial and technical crisis regarding its ground lease (erfpacht) administration systems. Alderman Alexander Scholtes recently disclosed during an emergency debate that the failure to transition from the outdated Hermes system to the long-delayed NISE project could cost the city between 20 and 40 million euros. The Hermes system, which has been in use since 2004, is now unsupported and presents significant security vulnerabilities that were not promptly communicated to the city council despite early warning signs. Officials knew as early as the beginning of the year that the transition timeline was unattainable, yet the full extent of the risks was withheld until October. This incident marks another costly IT failure for the city, following a similar project management issue earlier in 2025 involving the AFIS financial system. The city is currently debating how to manage the security risks and the substantial financial impact caused by these aging, unmaintainable systems.

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Based on reporting by rss. Translated and condensed by LocalHeadlines.

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