08. April 2008

Bolungarvík tunnel agreement signed

Iceland Prime Contractor and the Swiss company Marti Contractors have signed an agreement with the Iceland Road Administration concerning the construction of the Bolungarvík tunnel. The contract was signed in the Bolungarvík City Hall on Tuesday 8 April 2008.

IPC and Marti Contractors submitted the lowest bid for the tunnel construction project, with a tender amount of ISK 3,479,000,000 – nearly 3.5 billion Icelandic krónur – which is roughly 88% of the cost estimate. Bids for the tunnel project were opened by the Iceland Road Administration on 22 January 2008.

In late summer 2007, the Iceland Road Administration advertised for participants in the pre-selection process for a tunnel to be built between Hnífsdalur and Bolungarvík, as well as the related roads and portal structures.

The project includes the construction of a tunnel 8.7 metres wide and 5.1 km long, a concrete portal structure 310 metres in length, 3 km of roads, and two concrete bridges spanning the Hnífsdalsá and Ósá rivers.

The preliminary work on the project is already underway, and construction will begin in early May with construction camp set-up and excavation. Blasting of the actual tunnel is scheduled to begin in late summer.

Tunnel construction will continue over the coming winter, and construction of the roads and portal structures will be carried out in summer 2009. Excavation of the tunnel itself is scheduled for completion in October 2009, and completion of road construction and finishing work inside the tunnel is planned for July 2010.

An average of approximately 40 employees will work on the project, with the work crew expanding to around 60 at the peak of construction. The project manager is Rúnar Ágúst Jónsson of Iceland Prime Contractor.

Twitter Facebook
Go back

Construction in Keflavík is in full swing
24. June 2021

Construction in Keflavík is in full swing

The design phase in Keflavik which began in the middle of September 2020 has now been completed. The permission to commence is expected within the next few weeks. ÍAV received early permission to carry out the earthworks of the apron to ensure that the concrete paving could commence as early in the summer as possible. ÍAV has dug and removed 120.000 cubic metres of soil and rock and imported 100.000 cubic metres of crushed aggregates since March 9th, 2021.

Sky Lagoon handed over
12. May 2021

Sky Lagoon handed over

ÍAV has handed over the Sky Lagoon project to their client Nature Resort ehf. Sky Lagoon was open to the public on May 1, 2021. Sky Lagoon website is

Móavegur 2-12, Progress Report
30. November 2018

Móavegur 2-12, Progress Report

Since contract signing on Feb 16, 2018, a continuous progress is claimed by ÍAV and sub trades on Móavegur 2-12 project site in Reykjavík. The project is to deliver in a turn-key manner a 155-apartment affordable rental-housing complex entailing six 3-4 storey buildings with a shared underground carpark, with anticipated project completion in June of 2020. The Client Bjarg is a non-profit organization formed by two of Iceland’s largest confederations of labour, ASÍ and BSRB.

Project status on Burfell Power Plant expansion.
14. June 2018

Project status on Burfell Power Plant expansion.

Now about 85% of all construction has been completed on the Burfell power plant expansion. All water chanels have been concluded. The entrance chanel was completed late April and the sewerage chanel was completed in beginning of May.