Preparations for tunnel in north Iceland halted Skip to content

Preparations for tunnel in north Iceland halted

Preparations for a tunnel through the heath Vadlaheidi near Akureyri in northeast Iceland have come to a halt since the project has not received enough governmental support, organizers claim.

The private corporation Greid Leid, owned primarily by local authorities in northeast Iceland and the local company KEA, has undertaken preparations for the seven-kilometer long tunnel, which was to connect Eyjafjördur Fjord and Fnjóskadalur Valley, reports.

Operations were to begin this year and the tunnel was scheduled to open by the end of 2010. The parliament agreed to support the project by ISK 300 million (USD 4.7 million, EUR 3.5 million) for the next three years.

The cost of the tunnel was estimated at ISK 6 billion (USD 93.7 million, EUR 69.1 million). ISK 5 million (USD 78.1 million, 57.6 million) thereof would be regained from tunnel tariffs.

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