Government confirms funding cuts for Eystur- and Sandoyartunlar in proposed budget for 2025

In 2027, no funds from the national treasury will be allocated to the Eystur- and Sandoyartunlar under any guarantee arrangement.

This was revealed in the proposed budget for 2025.

The funding guarantee was 54 million in 2022, decreased to 47.2 million last year, and is projected to be 28.6 million this year, despite an allocation of 40 million.

This decline is primarily attributed to higher-than-expected traffic in the Sandoyartunnel, according to the government.

A total of 12 million Danish kroner is anticipated for next year, with estimates reaching five million for 2026. Subsequently, the guarantee arrangement will cease.

The government provides guarantees only for the minimum traffic levels specified in the company’s budget and its agreements with lenders.