As part of the proposed national budget for 2026, the government has halted work until its budget proposal has been considered by the Norwegian Parliament.

“The Norwegian Coastal Administration takes note of the government’s announcement. We are suspending our activities until the parliament has completed its deliberations on the national budget, and we receive a final decision. This also includes the tender process for the construction of the ship tunnel,” said coastal director Einar Vik Arset.

The government will present its budget proposal on Wednesday. This will be followed by budget negotiations, with the final budget expected to be adopted by parliament in December.

Arset said many interested parties awaited the decision.

“Future users of the ship tunnel, municipalities, and regional stakeholders have invested resources in this. We now await the outcome of the parliament’s deliberations,” said Arset.

If completed, the Stad Ship Tunnel would the world’s first full-scale ship tunnel. The 1.7km-long, 50m-high and 36m-wide structure would enable cargo and passenger vessels to bypass the hazardous waters around the Stad peninsula.

The initiative, under evaluation since the 1990s, was approved by the Norwegian Parliament in 2021.

In June, three prequalified bidders – Skanska Norge AS and Vassbakk & Stol AS (Norway); AF Gruppen Norge AS (Norway); and Eiffage Génie Civil (France) – submitted tenders to build the tunnel. The NCA planned to award the contract this autumn and for construction to start next year.