Iceland seeks bidders to design and build new secure prison

Morgunblaðið reports that the government’s property agency has invited companies and teams to apply for prequalification to design and build the first phase of a new secure prison at Stóra-Hraun in Árborg.

The competition has been advertised across the European Economic Area. Applications are due by noon on November 4.

The government approved construction of the prison in May 2025. It will be Iceland’s first prison specifically designed and built as a secure facility, replacing the existing prison at Litla-Hraun.

The first phase is planned to provide space for 92 inmates and is expected to cost 17.8 billion Icelandic krónur. Once fully built, the prison is expected to accommodate up to 128 inmates.

Earlier this summer, FSRE invited bids for earthworks. Borgarverk, based in Borgarnes, submitted the lowest valid bid, worth 993,093,626 krónur including VAT, and has since signed a contract to carry out the work.