Mega project scrapped as costs soar to €810M

A pioneering Norwegian infrastructure project has been scrapped after cost estimates exploded to €810 million, nearly double the original budget. The Stad Ship Tunnel would have been the world’s first of its kind.

The Stad Ship Tunnel was set to become the world’s first ship tunnel, with construction scheduled to begin in 2026. Four contractors had qualified to bid on the design-build contract in early 2025.

But now the Norwegian government has abandoned the project entirely as cost estimates exploded from an initial €430 million to €810 million.

“In the proposed state budget, we will announce that we are ending work on the Stad Ship Tunnel. It has become so expensive that we believe it would be irresponsible to proceed,” Prime Minister Jonas Gahr Støre told NRK.

This isn’t the first time the megaproject has been shelved. It has been studied more than 20 times since 1990. In 2023, the project was paused when cost projections reached €610 million. The Norwegian Coastal Administration and local municipalities have already spent hundreds of millions on property acquisition and planning.

The 1.7-kilometer tunnel was intended to provide maritime traffic with a safer route through one of the coastal areas most exposed to severe weather.