Norway announces road PPP programme

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Norway announces road PPP programme

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Norwegian Public Roads Administration has announced it has launched a road PPP programme.

Under the Public Private Partnership (PPP) model, a private company will be given full responsibility for a road section for a period of 20–30 years. The company will be responsible for financing, design, development, operation and maintenance. The company’s task is to make sure that the road is open and available for public travel and that it conforms to the agreed standard.

The Norway's roads authority is tasked with the planning up to and including the preparation of the zoning plan, and ensuring that all contractual requirements are adhered to. At the end of the operating period, the road shall be handed over to the Norwegian Public Roads Administration.

The PPP contract stipulates the annual amount the private company will be paid, and any deduction mechanisms and bonus schemes that are contingent on the quality and performance of the road section.

The Norwegian Government recognizes the benefits of PPP. The Ministry of Transport and Communications has asked the Norwegian Public Roads Administration to prepare three new PPP projects, as described in the proposition to the Storting, the supreme legislature, and in the report "On the Right Track – Reforms in the Road Sector".

The projects are discussed in the proposal for a new National Transport Plan for the period 2018–2029; a joint proposal by the four national agencies responsible for air, sea, rail and road transport in Norway. The report is scheduled to be presented in the spring of 2017.

The three projects are:

  • Rv 3 and rv 25 Ommangsvollen–Grundset/Basthjørnet in Hedmark County. The new roads will improve the road connection between Oslo and Trondheim. This development will also enhance Hamar and Elverum as residential and labour markets. Expected investment: NOK3.5 – 4 billion (US$400 - 460 million).
  • Rv 555 Sotrasambandet (the Sotra connection) in Hordaland County. The new main land connection between Sotra/Øygarden and Bergen is to ensure efficient transport to urban centres and urban districts, and to main roads, railway, airport and sea transport. Expected investment: NOK 7.5 – 8.5 billion (US$860 - 975 million).
  • E10 and rv 85 Tjeldsund–Gullesfjordbotn–Langvassbukt in Nordland and Troms counties. This road project is situated in Central Hålogaland and stretches across two counties and seven municipalities. The purpose of the project is to improve mobility and reduce travel time on the E10/Rv 85/Rv 83 between the towns of Sortland, Harstad and Evenes in Northern Norway. Expected investment: NOK 6 – 7 billion (US$690 - 800 million).

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.