Reykjavik mayor rejects road tolls on trunk roads

Reykjavik Mayor Hildur Björnsdóttir has ruled out road tolls on the city’s trunk roads, while the head of Better Transport says introducing charges would be extremely difficult without the support of the company’s owners, mbl.is reports.

Better Transport chief executive Þorsteinn Hermannsson said the city’s opposition was not currently a reason to fear delays to projects under the Capital Region Transport Agreement. However, he said the funding plan for projects from 2030 needed to be clarified as soon as possible.

Björnsdóttir said the city, which is one of Better Transport’s owners, would categorically oppose tolls on general traffic on trunk roads. She said the state must put forward other realistic ways to fund the projects.

Introducing the charges would require legislation passed by parliament, developed in consultation with municipalities. Municipalities would also need to approve the installation of toll equipment, Hermannsson said.

“I don’t think there is a will to take a matter like this through parliament if the municipalities where it would happen are completely opposed,” he said, adding that the plan would need broad agreement.

The updated transport agreement from 2024 projects 143 billion Icelandic krónur in revenue from congestion and traffic charges, or other funding, between 2030 and 2040. The projects were then estimated to cost about 311 billion krónur, with nearly 90 per cent of the cost falling to the state and just over 10 per cent to municipalities.

Part of the agreement is to be funded by selling Keldur land, which is owned by Better Transport. The proceeds are not expected soon because the area’s planning is being reassessed. The agreement had forecast 50 billion krónur from the sale of development rights in 2028, but the mayor said that timetable could not be met.

Hermannsson stressed that the agreement does not require road tolls, but allows for other funding. “If there are no congestion and traffic charges, the transport projects will be funded another way, as agreed,” he said.