The Norwegian Government has officially allocated NOK150 million ($16 million) in its revised national budget to launch the construction of the Stad ship tunnel.
This initial funding enables the Norwegian Coastal Administration to sign contracts and initiate construction, which operates under an overall cost framework of NOK8.6 billion.
Cutting through the Stad Peninsula between Moldefjorden and Kjødepollen on the west coast of Norway, the project will be the world's first full-scale ship tunnel.
The state-managed infrastructure will span approximately 1.7 kilometres in length, accommodating vessels up to 16 metres wide with a draft of up to 12 metres.
The proponents explained this coastal bypass aims to offer a safer and more predictable passage for vessels navigating one of the most challenging stretches of the Norwegian coastline.
The development is a turnaround from the government's proposal in October last year to halt further work on the project, citing significant increases in the project's overall cost that, "could no longer be justified."