Reykjavik awards Hlemm city line works for ISK 760 million

Reykjavik has chosen Gröfu og grjót – INVIT ehf. to carry out works at Hlemm for the Borgarlínan public transport system, in a contract worth ISK 760,334,961 including VAT, mbl.is reports. The project will redesign the junctions and surrounding streets, create new public squares and build the transit line through the area.

Borgarlínan is described as a high-quality public transport network intended to ease car traffic. Its buses will travel along Suðurlandsbraut and the upper part of Laugavegur, stop at Hlemm’s food hall and continue down Hverfisgata.

The work at Hlemm includes rebuilding the junction of Snorrabraut and Hverfisgata, as well as the section of Snorrabraut between Bríetartún and Hverfisgata. Plans also include squares on both sides of the transit route, two bus stops and new drainage, water, heating, electricity and telecommunications lines, along with traffic lights.

Four companies submitted bids in May 2026, but all were rejected because they did not meet the qualification requirements. Reykjavik’s Environment and Planning Department then decided to negotiate with Gröfu og grjót – INVIT ehf. under a provision of public procurement law. The company’s bid was the second-lowest; the lowest, from Stjörnugarðar ehf., was just under ISK 600 million.

Separate work on Laugavegur, between Hlemm and Katrínartún, began in June. It includes rebuilding the street and pavements, adding dedicated lanes for public transport and emergency services, and laying new walking and cycling paths. That project is expected to finish in spring 2027 and is divided into three phases.

Reykjavik began seeking ideas for a new design for Hlemm square in late 2017. Proposals by architecture firms Mandaworks and DLD were selected for further development. Several stages of work have already been completed at Hlemm, according to the Borgarlínan website.