The city of Helsinki has pitched a new plan to build a Guggenheim museum with bigger private donations, offering a lifeline to the project which the government has declined to co-fund.

The Solomon R. Guggenheim Foundation in 2012 proposed the museum for Helsinki – like those in New York, Bilbao and Venice – but the scheme has faced resistance from many Finns who consider it a waste of taxpayer money at a time of austerity in the recession-hit country.

The co-ruling nationalist Finns party blocked state aid for its construction.

Under the new plan, the Finnish capital city would pay €80 million and private donors would lift their share by giving €66 million, which would cover the lost state funding.

At the same time, the US foundation said it would decrease its annual licensing fee from $30 million to $20 million.

“You could say this is our last proposal. The city must now either take it or leave it,” said Ari Lahti, the head of Guggenheim Helsinki Support Foundation in charge of collecting private donations.

Donors include Finnish foundations, companies and private individuals such as Nokia’s former chief executive Jorma Ollila. Promoters of the museum hope the museum will be a cultural and tourism boost for the country, citing the example of the Bilbao Guggenheim which has helped to transform the Spanish city into a popular art and architectural destination.

“I’m quite certain that the benefits to the city and the whole country will be understood. But I’m disappointed that the biggest benefactor of the project, the state, is not taking part in the investment,” Lahti said.

The Helsinki city board, which narrowly voted down the project in 2012, will review the new plan next week. The building of the museum could start earliest in 2019.