22nd June 2018
Inger Lise Løvneseth (Magnus Legal)
Over the next 12-year period (2018 – 2029) the Norwegian government has proposed to develop the infrastructure by spending 1 064 billion NOK on roads, railways, shipping, aviation, and public transport. MSI's Norwegian law member Magnus Legal provides further insight into the government's infrastructure plans and related business opportunities.
The government explains that an investment of this magnitude is needed to stop the increasing deterioration on roads, railways and fairways. It is also required to develop infrastructure with a more long-term perspective to meet the needs of shorter travel time, higher safety, strengthened environmental protection, and to promote wealth creation.
The published plan is the most offensive in the history of Norway. Construction industry worldwide and particularly in Europe may find great business opportunities.
It is planned to spend 536 billion NOK on maintenance and new construction of roads. Several large projects have already been started to develop and reconstruct the main roads across the country. A total of 1 200 kilometres of new roads is planned, and 290 kilometres are going to be 4 lane roads. 100 billion NOK will, according to the plan, be spent on maintenance of the existing road network.
319 billion NOK is set aside for railroad. This is approximately 30 % of the total planned budget. The massive investment plans are supposed to transform the infrastructure to become more environmentally friendly by transporting more people and goods over longer distances safe and fast. Upgrades of already existing network and increase in the frequency of departure is supposed to make railroad the preferred way of travel in densely populated and urban areas. Long distance railroads operated by fossil fuel is reconstructed to operate using renewable energy sources.
Norway has a long coastline and long traditions within shipping. It is therefore essential to maintain safe and efficient shipping. According to the plan, 31,7 billion NOK is set aside for further development and modernisation of the navigation infrastructure at sea and developing new quays and moles to make the goods transport more effective.
3.9 billion NOK has been allocated to aviation. Among the largest projects is a new airport in Mo i Rana and moving the airport in Bodø to give room for the urban development of central city area.
The remaining 173,4 billion NOK is set aside for public transport, developing urban environments, running technology pilots and updating and adapting the legislation. The government believes that digitalisation and new technologies will radically change the way we travel and the effects travelling has on the environment and climate.
Also read: Do the right things when doing business in Norway
Because of public investments suppliers within EEA are offered equal terms when participating in a tender. The Norwegian procurement legislation is mainly based on EU directives that Norway is bound to implement through the EEA-Agreement.
The ongoing and planned public investments will trigger growth and development that can bring great opportunities for businesses within:
In addition to the contracts awarded through public procurement, a lot of subcontractors and a sizeable workforce will typically be needed for large projects like these. Medium and small companies, which do not meet the requirements to attend a large tender, may find opportunities in quoting for subcontracts.
Download free guide: Guide to Tendering for Public Contracts in Norway
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