Skanska has won a SKr800M (US$78M) deal to construct a new road tunnel in Gothenburg, Sweden’s second city.

The contract forms the largest part of the Gotaleden underground traffic route in Gothenburg, designed to create open areas and increase access between central districts and the Gota River. The awards is the biggest ever by Sweden’s National Road Administration.

The 500m road link will run under the Rosenlund Canal close to Jarntorget Square in central Gothenburg. About 380m will be built as an immersed tube with 40m tunnelled through rock.

Construction will start in the summer and the tunnel is due to open to traffic on 1 October 2005.