Norway revives mega project after pushback

Norway’s groundbreaking Stad Ship Tunnel project has been given a second lease of life after the Storting rejected government plans to cancel the scheme, paving the way for resumed negotiations with three major contractors including Skanska.

In the proposed state budget for 2026, the Norwegian government signaled its intention to abandon plans to construct the Stad Ship Tunnel, citing concerns that the project had become too expensive.

However, following the debate in the Storting, there was a significant U-turn. The Storting wanted to continue the ongoing negotiations.

The Ministry of Trade, Industry and Fisheries (NFD) has therefore instructed the Norwegian Coastal Administration to resume and complete the tender process for the Stad Ship Tunnel. The aim is for the matter to be presented to the Storting in connection with the revised state budget proposal for 2026.

“We are now entering negotiations with the three bidders. We have requested a revised initial bid by the end of November, before scheduled negotiations and delivery of updated bids in January and February,” says coastal director Einar Vik Arset in a press release.

The three bidders are AF Group, French contractor Eiffage Genie Civil, and Skanska, in partnership with Vassbakk and Stol.

“The negotiations are about making the project as good as possible. Finding the smartest solutions, reducing risk and cutting costs,” he adds.