27 Aug 2013

Sea breeze at the end of the tunnel

The pace of life is getting faster in northern Norway’s Helgeland region. It has become a destination-of-choice for new business, and will soon see a record long tunnel replace a narrow, low-speed road between the coast and the inland area.

The 10.7-kilometre road tunnel, which is set to be the longest of its kind in northern Norway and the twelfth longest road tunnel in the world, is part of a 35-kilometre stretch of new road being built.

The road project has been initiated with the ambition of building a shorter link between the coastal area of Helgeland with 15,000 inhabitants and the national highway E6 and the rail line running through the inlands.

The new road will secure valuable improvements for the coastal area community and business—reduced traffic time, a more accessible road network for freights and better road safety.

In particular, the new road will straighten up a heavy trafficked freight route between the local towns of Mo i Rana and Sandnessjøen by about one third to 105 kilometres, equalling 47 precious minutes spent on the road.

The current transverse connection has been haunted by crashes, rollovers and head-on collisions. Regarded as one of the most dangerous in the region, the road is heavily exposed to changing weather with frequent and long-lasting closures.

The Norwegian Public Roads Administration reports that, in the past five years alone, the road currently in use saw more than a hundred incidents of landslides, avalanches as well as stone and ice hindering traffic. The road was closed twelve times. On three occasions the coastal Helgeland was isolated from the rest of the country for three or even more days.

As commercial interests have begun to look northwards, Helgeland is experiencing a boom in industrial activities and an increasing inflow of tourists leading to more jobs in the region. Also, the chances are that the salmon on your dinner plate originates from coastal Helgeland, as it is one of the most important sources for farmed-fish in the world.

“The old road has been heavily trafficked by freights all year around. Local business will now get a greater scope for manoeuvre and the region will be seen as more attractive for new investment thanks to the new tunnel,” says Bjørn Helge Hansen, General Manager, Helgeland Veiutvikling.

The project is expected to be finalised in autumn 2014. The overall project cost stand close to EUR 200 million. The funding structure comprises a long-term loan from NIB, amounting to EUR 41 million, a loan from Norwegian DnB as well as government grants.

The project will charge road tolls for a 20-year period. The practice of charging road tolls is common to all new infrastructure projects in Norway, and considered a precondition to gain funding from the government.

“We have secured solid and diverse funding for the investment. The long-term financing from NIB was an important part of the package allowing us to manage and structure project cost,” Mr Hansen of Helgeland Veiutvikling concludes.

In addition to the new transverse connection being built, stretches of the European route 6 in the area is set for upgrades. Together these projects will ensure a significant infrastructure enhancement, promising a faster pace of life in the vast, scenic region of northern Norway.

 

Related resources

14 Jun 2013

Helgeland Veiutvikling AS

EUR 41.9 million

Press Release

14.6.2013

NIB finances road tunnel record in northern Norway