Reykjavík Concert Center May Exceed Cost Estimates Skip to content

Reykjavík Concert Center May Exceed Cost Estimates

By Iceland Review

The Icelandic National Concert and Conference Center, which is currently under construction at the harbor in Reykjavík, could exceed its cost estimates by ISK 650 million (USD 5.1 million, EUR 3.8 million) if the exchange rate of the króna remains as weak as it is now.

The Icelandic National Concert and Conference Center under construction. Photo by Eygló Svala Arnarsdóttir.

Austurhöfn-TR, on behalf of the Icelandic state and the City of Reykjavík, took over the project from private contractor Portus in February this year, Morgunbladid reports.

At that time the National Audit Office warned that the greatest risk involved in taking over the project was that if cost estimates would be exceeded taxpayers would have to cover the additional amount.

Both the Central Bank and the Ministry of Finance expect that the ISK will not appreciate much for the next three years.

The annual contribution from the state and city is ISK 808 million (USD 6.3 million, EUR 4.8 million), which is index-linked, and Austurhöfn-TR expects that approximately 50 percent of the loss in currency will be returned with an increasing index, which comes with a weak exchange rate.

Originally, when the state and city made an agreement with Portus on constructing the concert center in 2002, the project was expected to cost ISK 6 billion (USD 47 million, EUR 35 million).

Since then, cost estimates have changed and now, taking the weak exchange rate of the króna into account, it is assumed that by the time the center is completed in 2011, it will have cost around ISK 25.2 billion (USD 197 million, EUR 146 million).

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