Government considers capital increase for Fljótagöng tunnels

An increase in the share capital of infrastructure company Göng og brú is being considered to help it finance and carry out the Fljótagöng tunnel project, mbl.is reports.

The additional capital could consist of cash covering part of the project’s initial cost or other income-generating assets. The aim would be to give the company the financial capacity to undertake the project and speed up its progress.

The proposal is outlined on the Icelandic government’s website in connection with the finance minister’s powers under the 2027 budget bill. The authority concerning the infrastructure company is new and is intended to increase its investment capacity so it can finance and develop important transport infrastructure.

The company is expected to take responsibility for financing Ölfusárbrú bridge as one of its first projects under a proposed agreement. Otherwise, the bridge would have to be fully financed by the state treasury in 2028, when it is handed over. The company is also expected to carry out the Fljótagöng project, with construction planned to begin in the second half of 2027.

Fljótagöng was ranked first on the transport plan’s list of priorities. The tunnels will connect Siglufjörður and Fljót and are expected to be 5.3 kilometres long, according to the Icelandic Road and Coastal Administration’s website.