The Norwegian Government has proposed to halt further work on the Stad ship tunnel project, citing that the costs have almost doubled and can no longer be justified. The decision was announced in the 2026 state budget.
In 2021, the Norwegian parliament approved the project with a cost framework of NOK4.1 billion (approximately $380 million). This was later price-adjusted to NOK5.3 billion.
After a tender was announced in December 2024, all three offers received were significantly above this framework. The Norwegian Coastal Administration advised that it was not realistic to negotiate the price down and that a new realistic budget would be NOK9.4 billion.
Minister of Fisheries and the Oceans, Marianne Sivertsen Næss, stated that the cost increases mean the construction can no longer be justified. She added that stopping the "very unprofitable" project will provide increased financial room to initiate other projects that will contribute more to "safety and accessibility."
The project was previously assessed as economically unprofitable in 2020, with a negative net benefit of NOK-2.35 billion.
Since then, expected costs have increased by over 140 per cent, while benefits have only increased by about 23 per cent.
