Denmark-headquartered design and engineering consultant Cowi has won a preliminary and detailed design contract for the new Fljótagöng tunnel from Vegagerðin, Iceland’s road and coastal administration.
The project will see a new 24km road and a 5.3km tunnel built to enable year-round connectivity between northern Iceland’s remote Siglufjörður and Fljót districts.
It will replace a mountain road vulnerable to subsidence and weather that is periodically closed.
Cowi will pay special attention to the tunnel’s alignment, which goes through a water conservation area with potential landslide and avalanche risks.
The role involves geotechnical engineering, road and bridge design, water and wastewater systems, structural design, electrical engineering, tunnel control and safety systems.
Gunnar Gunnarsson, Cowi’s senior vice president in Iceland, said: “Alongside technical delivery, the project reflects broader infrastructure goals in North Iceland. Improved reliability and safer travel conditions are expected to support regional mobility, access to services, and economic activity, while helping sustain smaller communities that experience geographic and climatic isolation.
“Previous tunnel developments in Iceland have demonstrated similar impacts, including strengthened labour markets, improved access to healthcare and education, and more stable population trends in rural areas.”
The project has been allocated as a priority investment within Iceland’s national transport planning framework.
Cowi is due to complete the design of the project by November 2026.
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