On 10 October, as part of the national budget proposal for 2026, the Norwegian government announced that works on the Stad Ship Tunnel would be suspended due to rising costs, which have increased to EUR808 million (NOK 9.4 billion) compared to the initial EUR430 million (NOK 5 billion) budget for 2025.
However, following the debate on 14 October, a majority in the Norwegian Parliament (Stortinget/Storting) has decided to ask the government to allow the Norwegian Coastal Administration (Kystverket) to continue negotiations with the three bidders, with the aim of presenting a proposal to the Storting during the 2026 national budget revision.
Following this decision, the Ministry of Trade, Industry and Fisheries (NFD) requested Kystverket to resume and carry forward the tender procedure for the Stad Ship Tunnel.
Kystverket has requested a revised bid by 27 November from the three selected bidders: the joint venture of Skanska Norge AS and Vassbakk & Stol AS (Norway), AF Gruppen Norge AS (Norway), and Eiffage Génie Civil (France).
Negotiations are scheduled for December and late January to identify the most suitable solutions, reduce risks, and cut costs, with the goal of submitting updated bids between January and February. Further final negotiations may be required in March and April before a final offer is available.
The plan is nevertheless to provide the Ministry with a sufficient basis by March 2026, in view of the national budget revision. The documentation will include proposals for a new management framework (P50) and an overall project cost estimate (P85), as well as potential adjustment options and possible cost-cutting lists.
Kystverket has also asked the NFD for permission to resume the activities and processes necessary to ensure efficient project progress until its final consideration by Parliament. These are already initiated tasks, important for project progress, but they do not entail significant commitments or costs.
Update on socio-economic assessments
As part of updating the project’s decision-making documentation, Kystverket has recently completed a revision of the socio-economic analysis based on currently available data. Compared with previous calculations, both costs and benefits have increased.
In particular, the benefits related to the reuse of excavated rock materials for the development of new economic activities have grown, as well as those associated with the reduction of waiting times for maritime traffic.
Click here and no/132 for further information in the tunnelbuilder archive and also visit https://www.kystverket.no/. 43/25.
