Funding for Fámjinstunnel project increased to 285 million Danish krone in Denmark

Funding for the Fámjinstunnel project will be increased to 285 million Danish krone, up from the previous allocation of 252 million krone.

The increase is necessary to allow the national infrastructure agency, Landsverk, to enter into financially binding agreements to complete the remaining parts of the project and related roads, explained Dennis Holm, the Minister of Transport, who presented the proposal to Parliament.

The Fámjinstunnel, which includes a tunnel to Fámjin, has faced serious challenges, most notably poor quality materials. In 2023, two significant collapses occurred within the tunnel, along with other ongoing issues. The construction has been severely hindered, leading to substantial additional costs.

This year, a total of 88 million krone has already been allocated, but with unspent funds rolled over, the available budget for this year stands at approximately 97 million krone.

In the supplementary budget recently presented, an additional 19 million krone is being requested for this year, while 14 million krone has been earmarked in next year’s financial budget to ensure the project is completed.

Accompanying the proposal, it has been noted that Landsverk has filed a claim against an insurance company for compensation regarding the increased costs.