Norway's new government budget has restored hope for building the world's first ship tunnel at Stad, with US$15.8 million allocated for early contracts and preparatory work, reports Fort Lauderdale's Maritime Executive.

The tunnel would run one mile through the Stad peninsula, allowing coastal vessels to bypass dangerous waters. Plans call for a structure 50 metres high and 36 metres wide, accommodating both passenger and cargo ships.

The project was shelved in 2025 after Prime Minister Jonas Gahr Støre stated that costs were too high, with estimates reaching NOK9.6 billion (US$1 billion). Revised plans submitted in March lowered the figure to NOK8.6 billion.

Proponents succeeded in inserting initial funding into the June 7 budget proposal, despite earlier government statements that no money was available. Parliament is due to issue final approval by June 19.

The Norwegian Coastal Administration stated that the funds would allow demolition work and water pipeline contracts to proceed. It has already evaluated bids from AF Gruppen, Eiffage Genie Civil, and the Skanska/Vassbakk & Stol consortium.

Project manager Harald Inge Johnsen indicated that construction could begin in 2027 if funding is maintained. Director General Einar Vik Arset added that the administration is ready to act once instructed by the Ministry of Trade, Industry, and Fisheries.