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NCC to Build Two Road Tunnels on Faroe Islands

ncc logo Sweden-based construction company NCC on Nov. 8 signed a contract to construct two road tunnels in the Faroe Islands. The contract is split into two sub-projects and is conditional upon approval of project funding by the government of the Faroe Islands. The value of the first tunnel amounts to approximately SEK 1.5 billion ($165 million US). The value of the second tunnel is approximately SEK 1.2 billion ($132 million US), with an option for the customer to decide not to implement the project.

“We have extensive experience of tunnel construction at NCC, with leading-edge expertise in our Norwegian operation. It is gratifying to be able to offer a comprehensive concept that provides security for the customer in terms of the implementation of the project,” says Svante Hagman, Business Area Manager of NCC Infrastructure.

The assignment comprises two tunnels measuring 11.2 and 10.5 kilometers, respectively. The project also includes roads and roundabouts for connection to the existing infrastructure.

NCC has considerable experience of tunnel construction in the Faroe Islands, having built the Vagatunnilin and Nordoyatunnilin tunnels at the beginning of the 2000s. Several of the key individuals who were involved in these projects will be included in the project team for the new tunnels.

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The customer is P/F Eystur- och Sandoyartunlar (EST), which is wholly owned by the government of the Faroe Islands.

Construction work on the first tunnel – Eysturoyartunnilin – will commence in December 2016. For the second tunnel – Sandoyartunnilin – the customer has the option to, not later than June 30, 2018, decide to not implement the project.

The order for the first tunnel will be registered in the NCC Infrastructure business area in the fourth quarter of 2016, provided there is prior approval of the funding by the government of the Faroe Islands.  It is estimated that the order for the second tunnel will be registered in the third quarter of 2018, provided that the customer does not decide to exercise the option to not implement the project.

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