Urgent.News

What's breaking now, across thousands of outlets.

Business

Avinor varsler milliardsprekk i nord

De nye flyplassene i Bodø og Mo i Rana blir dyrere. Det kan bety økte avgifter og dyrere billetter.

Avinor varsler milliardsprekk i nord

Avinor has projected potential costs of between 1 and 1.5 billion kroner for the next decade due to extensive cost assessments. Anders Kirsebom, Avinor's chief executive and leader of the airport projects, informed E24 about this. The two airports were initially estimated to cost 13.9 billion kroner in 2027. However, the projects are now expected to be around 10 percent more expensive.

Avinor emphasizes that the cost assessments are estimates and depend on ongoing negotiations with suppliers. Kirsebom anticipates presenting complete forecasts in early 2027. Currently, the bill falls on Avinor, which must find a way to cover these costs. Avinor's main revenue comes from fees paid by airlines for using the airports.

If these fees increase, it may mean airlines raise ticket prices to cover the higher costs. Avinor generates income from leasing areas for shops, catering, parking, and tax-free sales at the airports. Kirsebom argues that it is unfair for civil aviation to bear the financial burden. He says they are monitoring issues, particularly with regards to the military and departments.

The 2027 state budget shows a cost ceiling of 8.5 billion in 2027 kroner for Bodø and 5.3 billion for Mo in Rana. Both amounts are now higher. The project's increased cost in Bodø stems from relocating the airport 900 meters to free up land for urban development. Much of this cost is due to the military's continued presence in the area, a factor that has changed since the project was planned, especially due to the war in Ukraine.

This has created new needs and higher expenses. In February, NRK reported that Avinor and the military were fighting over an additional 200 million kroner. Kirsebom says they are in a situation where the military's security needs are evolving, and the project has become more expensive due to changed assumptions. Kirsebom adds that there is a significant amount of money - several hundred million kroner - that needs to be allocated elsewhere rather than to civil aviation.

The military's continued presence has altered both the design and execution of the Bodø project, requiring Avinor to relocate civil functions westward and redesign solutions as the military still requires land. He provides an example of demolition work. The plan was to demolish extensively and relocate masses. However, due to the presence of military personnel, this work had to be done with lighter loads.

A different type of change that was several million kroner more expensive was security regulations. These led to changes in the terminal and a need for more equipment. In addition to acknowledging Avinor's underestimation of costs by completing the new airport in an acceptable state, Kirsebom notes that he is not satisfied with paying 1-1.5 billion kroner.

Ideally, they should have managed these costs within the project's budget. He says there are costs they could have handled better in the pre-project phase and planned better. Thus, it is a combination of better planning and some unforeseen circumstances. He believes Avinor still has good control and management of the projects. He also states that they should discuss some of these issues with the department and involve airlines.

In Bodø, Avinor aims to open the airport in October 2029. Birkan acknowledges that the military's continued presence is the biggest remaining uncertainty and cannot guarantee that there won't be additional overruns. He simply assures that they will closely monitor and manage the project well.

Written by urgent.news from E24 Norway's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at e24.no →

More in Business

Carbon finance hinges on viable ventures

Financing the shift towards lower emission production is creating new opportunities for green credit particularly in agriculture where funding arrangements need to reflect upfront investment costs…

More from Monday 19 October →