Transportation agreement for capital region in Iceland extended to 22 years with costs soaring to 310 billion króna

A revised transportation agreement for the capital region has been introduced to governing party parliamentary groups, extending the project’s timeline from 15 to 22 years. The total estimated cost has risen significantly to 310 billion Icelandic króna.

The agreement, under review since last year, has seen costs increase by almost 90%, according to former Minister of Finance Bjarni Benediktsson. This financial surge marks a shift from earlier plans estimated at 160 billion króna.

Vilhjálmur Árnason, deputy chairman of the Independence Party parliamentary group and a member of the Environmental and Transport Committee of the parliament, confirmed the update, emphasizing the extended duration of the project and increased expenses. He expressed concerns about the lack of clear communication regarding the immediate benefits users can expect during construction.

Árnason noted that while proposals to enhance the public transport system exist, he has not received detailed plans on how existing infrastructure could be utilized more effectively until construction begins. He criticized the limited transparency and collaboration in the planning process, advocating for greater communication between the parliament and municipal authorities. Ensuring adherence to legislative policies and proper funding allocation is essential to maximize resource efficiency, he stated.

When questioned about the distribution of expenses under the revised plan, Árnason admitted that comprehensive details are still not fully available. The ongoing discussions indicate a pressing need for clarity in funding and project management to foster public trust and optimize transportation improvements in the capital area.