ISK 130 Million in Grants to Strengthen Rural Settlements Skip to content
Útivera Ganga Náttúra Gengið frá Aðalvík að Hesteyri og til baka
Photo: Golli.

ISK 130 Million in Grants to Strengthen Rural Settlements

The Minister of Infrastructure has allocated a total of ISK 130 million ($910,000 / €848,000) in grants to twelve projects in rural Iceland in accordance with the regional development plan. Emphasis is placed on strengthening areas suffering from chronic population decline, unemployment, and a lack of economic diversity.

12 projects organised by seven regional associations

Sigurður Ingi Jóhannsson, Minister of Infrastructure, has allocated grants in the amount of ISK 130 million ($910,000 / €848,000) to 12 projects organised by seven regional associations. The grants are intended to strengthen the country’s rural settlements and are allocated to specific projects in key areas in accordance with the regional development plan for the years 2022-2036. A total of 32 applications for grants, totalling over ISK 857 million ($6 million / €5.6 million), were received for the year 2023.

The aim of the grants is to connect individual plans within different regions of Iceland with the government’s regional development plan while also affording locals greater responsibility in the allocation of funds. Emphasis is placed on strengthening areas with chronic population decline, unemployment, and a lack of economic diversity.

Projects that receive funding must benefit individual regions, localities within the region, or the region as a whole. Population development, the composition of the economy, the level of employment, and average income were among the factors that were used as a basis for evaluating applications. A three-member selection committee reviewed the applications and made recommendations to the minister.

Value creation in sheep farming, Straumhvörf

The projects that received the highest funding are “value creation in sheep breeding areas,” which received the highest single grant from the Ministry of Infrastructure’s fund. The project incentivises innovation and value creation in sparsely populated areas that are heavily reliant on sheep farming. The funding – ISK 21.6 million ($151,000 / €141,000) – will go to the Federation of Municipalities in West Iceland, the Association of Local Authorities in the Westfjords (i.e. Fjórðungssamband Vestfirðinga), and the Federation of Municipalities in Northwest Iceland.

The second highest grant went to the Straumhvörf project, which is a collaboration between the Federation of Municipalities in East, Northwest, and West Iceland; Visit North and East Iceland (i.e. áfangastofa norður- og austurlands); Austurbrú; and the Marketing Office of North Iceland (i.e. Markaðsstofu Norðurlands). Straumhvörf is a project seeking to implement a design and product workshop for a new tourist circuit around East and North Iceland in connection with direct international flights to Egilsstaðir and Akureyri. The Federation of Municipalities in East Iceland will receive a grant of ISK 15.6 million ($110,000 / €102,000).

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