Statens Vegvesen (The Norwegian Public Roads Administration) has today released the information that the second bidder consortium has withdrawn from the bidding for the OPS project E10 Hålogalandsvegen which involves construction of 82 kilometers of new road including 27 kilometers through a total of seven tunnels.

'Via Boreal's' the consortium led by Spanish Acciona had already jumped the ship, reducing the potential bidders to two remaining consortia.

Now also the 'Nordland Connect', the consortium led by Turkish company Gülermak has withdrawn from the bidding process.

This leaves 'Skanska Hålogalandsvegen' lead by Swedish Skanska as the only willing bidder for the project. Statens Vegvesen seems adamant that the project is still doable, though it is anyone's guess how favorably it will reflect negotiating with only one bidder for the project.

Below is a quick translation of Statens Vegvesen's press release from Norwegian to English. All translation mistakes are mine.

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The provider group Nordland Forbinde withdraws from the OPS project E10 Hålogalandsvegen

Only one provider group remains in the competition to be allowed to build and operate E10/rv. 85 Tjeldsund-Gullesfjordbotn-Langvassbukt. It is still possible to land the contract, says Statens Vegvesen.

Statens Vegvesen regrets that two of the three qualified provider groups have withdrawn from the competition to be allowed to build and operate E10/rv. 85 Tjeldsund-Gullesfjordbotn-Langvassbukt. Via Borealis withdrew in mid-February, and now just over six months later, Nordland Forbinde is also withdrawing.

- For us as a developer, it is of course unfortunate to be left with only one provider in a competition for such a large and comprehensive development, says director of development at Statens vegvesen, Kjell Inge Davik.

Will continue with a provider

The Norwegian Public Roads Administration nevertheless believes that it can lead to carrying out the planned offer and negotiation phase with the one provider group that is still involved, Skanska Hålogalandsvegen.

- They have solid experience from large PPP projects, developments and operations in arctic regions. If they manage to deliver an offer well within the financial framework adopted by the Storting, the acquisition and development will be able to proceed as normal, says Davik.

With today's economic backdrop, Statens vegvesen believes that there is still a clear element of competition in the procurement and that the remaining tenderer must in any case stretch to be sure of getting the assignment.

Negotiations

The first offer will be delivered by 15 September 2022. It is planned to enter into a contract in the summer of 2023. This enables construction to start in the same year with an assumed construction time of 6-7 years.

Facts about the project

In the OPS contract E10 Hålogalandsvegen, one supplier is given responsibility for planning, financing, construction and operation of the new road system for 15 years. The contract covers the sections rv. 85 from Sigerfjordtunnelen to Gullesfjordbotn, E10 from Gullesfjordbotn to Steinsland v/Tjeldsund bridge, rv. 83 from Tjeldsundbrua to Fauskevåg and rv. 85 from Kåringen to Fiskefjord.

A total of 82 kilometers of new road will be built, including 27 kilometers through a total of seven tunnels. Of the remainder, 35 kilometers will be built in the current road alignment, while 20 kilometers will be laid in a new road alignment.

The total and upper limit for the entire project, including land acquisition, preparatory work and expenses for the Norwegian Public Roads Administration, has been set by the Storting at NOK 18.3 billion (2021).

The provider grouping that is involved

Skanska Hålogalandsvegen.

Led by Skanska Norge AS, which includes Skanska Infrastructure Development AB, Multiconsult ASA, Aas Jakobsen AS, AJ Trondheim AS, ViaNova AS, Svevia Norge AS, Skanska AB, Skanska Hedmarksvegen Invest AB, Skanska Norge Konsernpensjonskasse and Skanska Trean Allmän Pensionsstiftelse.

The provider groups that have withdrawn

Via Borealis.

Led by ASTM S.p.a which includes Acciona Concesiones S.L, Acciona Construccion SA, Itinera S.p.a, Acciona WEP Holding inc., Rambøll Norge AS, Rambøll Finland Oy and Mesta AS.

Nordland Connect.

Led by Gülermak Sp. z o.o. which includes Aldesa Construcciones S.A., Intertoll Infrastructure Developments B.V., Tecnicas y Proyectos S.A. (TYPSA), AFRY Norway AS, Intertoll Europe Zrt, Intertoll Limited, Duna Intertoll Zrt, Mecsek Autopalya-uzemelteto Zrt, Intertoll Polska Sp. z o.o., Intertoll Construction Sp. z o.o., Gülermak Ağır Sanayi İnşaat ve Taahhüt A.Ş. and Intertoll Capital Partners B.V.

https://kommunikasjon.ntb.no/pressemelding/tilbydergruppen-nordland-forbinde-trekker-seg-fra-ops-prosjektet-e10-halogalandsvegen?publisherId=17847490&releaseId=17940014&lang=no

The source for the text and the graphics is the Statens vegvesen press release. Sloppy translation is mine.