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AF Gruppen is awarded the Contract to Build the Stad Ship Tunnel

Photo:Kystverket/Multiconsult/Link Arkitektur

The design-build contract for the Stad Ship Tunnel is valued at approximately NOK 5.6 billion, excluding VAT, and is scheduled to be signed in August. Construction is planned to begin in early 2027.

AF Gruppen (AF Group) has been awarded the contract following a comprehensive tender process, in which three bidders participated in the final negotiation round.

– We have been fortunate to have highly skilled and committed bidders participating in this competition. The final bids were submitted in April, and following a thorough evaluation, AF was found to have submitted the best overall bid. We now look forward to working with an experienced Norwegian contractor to deliver this historic project, says Director General Einar Vik Arset.

Design-Build Contract

This is a design-build contract under which the contractor will be responsible for both the detailed design and construction of the Stad Ship Tunnel.

The scope of the contract includes the construction of a 1,700-metre ship tunnel
through the Stad Peninsula, connecting Kjødepollen in Vanylvsfjorden with
Moldefjorden near Selje. The tunnel will be 50 metres high and 36 metres wide.
The contract also includes the construction of approach and guiding structures,
development of commercial areas at both tunnel portals, transport of excavated rock to external disposal sites, rock support, fender systems and technical installations inside the tunnel, as well as dredging of the shipping channel in Saltasundet near Selje.

Following the contract award, there will be a short standstill period before the contract can be signed. The signing is planned to take place after the Norwegian summer holidays in August.

Collaboration Phase Before Construction

Before excavation of the tunnel begins, the parties will enter a collaboration phase.The purpose is to prepare for construction, establish effective working procedures, and resolve potential challenges before the main construction works begin. The collaboration phase will begin in August. During this period, the contractor will also begin the detailed design of its scope of work.

– The major construction works will not begin until 2027. Before then, preparatory
activities may include establishing site offices and accommodation facilities,
upgrading existing roads, and constructing temporary access roads. This summer,
we will also tender two separate contracts for the installation of water pipelines and the demolition of buildings that must be removed to make way for the ship tunnel, says Project Manager Harald Inge Johnsen.

New Cost Framework Approved by Parliament

On 19 June, the Norwegian Parliament (Stortinget) approved a new P85 cost
framework for the Stad Ship Tunnel project. The revised cost framework amounts to NOK 8.588 billion.

Following Parliament's decision, the Norwegian Coastal Administration has also
received an updated assignment and allocation letter from the Ministry of Trade,
Industry and Fisheries. This provides the Norwegian Coastal Administration with the authority to sign the design-build contract and move forward with the construction of the world's first ship tunnel.

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