Political inaction leaves Steno Centre stalled for 10 months

The planned Steno Centre has been left in political limbo for 10 months after its projected cost rose sharply, according to documents obtained by Kringvarp Føroya.

The construction committee for the centre concluded in November 2025 that continuing was unrealistic because funding was not available. It said the cost estimate underlying the project had proved seriously inaccurate.

Landsverk, the government construction agency, estimated as recently as summer 2025 that the centre could be built for 63 million kroner. The planned building would have 1,200 square metres and be constructed on top of the old C building at the National Hospital.

When bids were opened in mid-October, the lowest offer was just over 67 million kroner. However, the construction committee identified several significant uncertainties.

Construction costs are expected to be particularly high because work would take place directly in front of the hospital’s main entrance and reception area. The existing building would also have to be emptied for several months. The estimate did not include unforeseen costs or price increases.

The committee also objected to a proposal from consultants to leave one floor unfinished to reduce costs. That floor is intended for research, which the committee described as a foundation of the centre’s purpose.

The committee estimated the final cost at between 87 million and 95 million kroner, depending on how much could be saved. It said Landsverk had stated at the start of the project that it was so well financially protected that additional costs were considered impossible.

In a letter to the Ministry of Health dated November 18, 2025, the committee said there had nevertheless been major miscalculations and numerous delays. It recommended either funding the project at the bid prices or reviewing the project and finding another solution.

The letter was signed by Steinar Eirikstoft, then the outgoing hospital director and chair of the construction committee. Súsanna Bertholdsen was health minister when the letter was sent.

According to the article, the Steno Centre then fell between the cracks of the political system. Ten months later, the authorities must still decide what should happen. Health Minister Eyðdis Hartmann Niclasen told the radio on Friday that the entire project now needs to be reviewed.

A construction act must be submitted to the Faroese Parliament before the centre can be built, but that has not yet happened. If the cost remains at 95 million kroner for 1,200 square metres, each square metre would cost just over 79,000 kroner.

Landsverk’s project department, which was due to act as the client for the construction, was abolished in a political decision this summer, effective January 1.

On September 26, it will be four years since then-health minister Kaj Leo Holm Johannesen signed an agreement with the Novo Nordisk Foundation. The agreement included plans for a new Steno Centre in the Faroe Islands to strengthen diabetes and endocrinology treatment and research. The facilities were originally expected to open in 2026.