Icelandic government covers operational costs for public bus services in Reykjavik

The Icelandic government will cover one-third of the operational costs for public bus services according to an updated transportation agreement for the capital region. This information comes as the parliamentary Environment and Transport Committee received a briefing on the new agreement.

Significant changes in the plan include extending the project timeline from 15 to 22 years, with an estimated cost increasing from 160 billion to 310 billion Icelandic krona. The agreement also stipulates that the state will absorb a portion of the operating expenses for the bus service, alongside delays in the completion of planned bus rapid transit projects. Additionally, plans are underway for the construction of tunnels on Miklabraut, a main thoroughfare.

Bjarni Jónsson, chair of the Environment and Transport Committee, expressed a positive outlook on the updated agreement, highlighting improvements in project oversight, cost analysis, and organizational structure. He noted that there is substantial agreement on overall goals, though some disputes remain regarding prioritization.

The updated plan was initially announced in mid-March of last year, with expectations for a completion date that slipped from last summer to year-end, and provided updates in January indicating progress. Mayor Einar Þorsteinsson welcomed the resolution, despite acknowledging the drawn-out review process, stating it provides a solid foundation for a promising outcome beneficial to all stakeholders and represents a significant advancement for the capital region.

The updated transportation agreement will be formally introduced tomorrow, anticipated to herald improvements in the area’s public transport infrastructure.