The budget leaks around Stad ship tunnel have been known since September. When the proposal for the state budget for 2024 came in October, it became even more apparent. The Norwegian Coastal Administration plans to put the Stad ship tunnel out for tender in 2024.
The Stad ship tunnel is a highly important project, both for the business sector, local shipping, and safety along the coast. It will also provide crucial predictability for the development of key maritime industries in the region. Starting the tender process is essential to determine if it can be realized within the established framework. If we receive offers within this framework, we can start the work on realizing the ship tunnel. That is our goal, says former Minister of Fisheries and Ocean Policy Bjørnar Skjæran.
The government proposes allocating 130 million Norwegian kroner for preparatory work and conducting the tender competition in 2024.
Tender process next
We are pleased that the government acknowledges that this is an important project for coastal Norway and for the safety of shipping. A ship tunnel of such dimensions has never been built before and that is why risk and uncertainty provisions in the cost estimates has been significant. We have stated that we believe it is possible to reduce the costs for the project, especially in connection with reducing uncertainty. But the significant savings will only be clarified in a tender process and through negotiations with the contractors who will build the tunnel. It is good that we have now achieved a breakthrough on this, says Acting Director of the Norwegian Coastal Administration, Per Jan Osdal.
In the spring of 2021, the Norwegian Parliament (Stortinget) approved that the Stad ship tunnel could be built within a cost framework of 4.09 billion Norwegian kroner. This amounts to approximately 5.06 billion kroner in 2024-prices.
If the bids from contractors do not come below the cost framework of 5.06 billion kroner, the project may need to return to the Parliament to get a new budget approved.
High interest among contractors
The Norwegian Coastal Administration has conducted two supplier conferences, both with significant national and international interest. The latest was held in January/February, with over 160 participants from 80 different suppliers and contractors. The purpose of the supplier conferences is to prepare the market for an upcoming competitive tender process.
“We experience a great interest in the project among contractors. Strong competition will likely have a positive effect both on technical solutions and price”, says Project Leader for the Stad ship tunnel, Terje Skjeppestad.