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Follobanen project cost increases and timeline escalates, Norway [free access]

January 31, 2019

Bane NOR has announced an increase in the project cost by 7.7 per cent and a delay in the timeline of the Follobanen/Follo Line by one year due to the cancellation of two engineering, procurement, and construction (EPC) contracts with Italy-based construction contractor Società Italiana per Condotte d'Acqua S.p.A (Condotte). The project cost has increased from NOK28.5 billion to NOK30.7 billion and the commencement of operations has been delayed from December 2021 to December 2022.

 

In January 2018, Bane NOR cancelled two EPC contracts with Condotte due to the company’s financial problems in 2017. The cancellation of the contract incurred an additional cost of NOK1.6 billion for the authority. In addition, the ground conditions for construction have also been more challenging than expected.

 

The Follo Line is a planned high-speed rail line, which will span 22 km from Oslo to Ski. The project involves construction of Norway’s first 20-km-long twin-tube rail tunnel. The construction work is 72 per cent completed against the target of 79 per cent. The five EPC contracts for the project were signed in 2015 and 2016. Construction work began in 2015. The service on the line will be operated at a maximum speed of 250 km/hr and the travel time between Oslo and Ski will be 11 minutes. 

 

(1 NOK [Norwegian Krone] = 0.12 USD)