Fljótagöng funding remains unresolved as deal stays unsigned

There is no final assessment of the capital needed for the Fljótagöng tunnels, and no agreement has been reached with infrastructure company Göng og brú to take on the project, mbl.is reports.

The Ministry of Finance and Economic Affairs also has no estimates for the project’s expected debt payments, the tolls that might be required or the share of costs tolls would need to cover. The information was provided in Finance Minister Daði Már Kristófersson’s response to a question from Independence Party MP Ólafur Adolfsson about funding for the tunnels.

The transport plan aims for construction to begin in 2027, and the tunnels are being considered as one of Göng og brú’s first projects. The tunnels are planned to connect Siglufjörður and Fljót and would be 5.3 kilometres long.

The 2027 budget bill proposes authorising an increase in Göng og brú’s share capital to strengthen its capacity to invest. The increase is being considered to give the company the financial means to fund and build the tunnels and speed up the project. It could take the form of cash covering part of the construction cost or revenue-generating assets. The proposed state contribution could be made at once or drawn down over a set period, but its size has not been specified.

The infrastructure minister must agree with the company on the development and operation of any transport projects it takes on. Such an agreement also requires approval from the finance minister. No agreement has been reached for Fljótagöng.

It also remains unclear whether toll revenue from other infrastructure, including Sundabraut and Ölfusárbrú, would be used to fund the tunnels. In September, the infrastructure ministry and Göng og brú signed a letter of intent on developing transport infrastructure, described as a first step towards formally assigning the company responsibility for projects including Fljótagöng, Ölfusárbrú and Sundabraut.