Västlänken Contractor Faces Billion-Kronor Claim for Cost Overruns

Systematic deficiencies have led to unacceptable cost increases for one of the West Link's sub-projects in Gothenburg, according to the Swedish Transport Administration. Now the authority is directing sharp criticism towards one of the contractors – and is demanding back billions of kronor.

» Published: September 03 2025 at 12:37

Västlänken Contractor Faces Billion-Kronor Claim for Cost Overruns
Photo: Björn Larsson Rosvall/TT

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It is in a new examination that the Swedish Transport Administration points to serious deficiencies in connection with the construction of the gigantic infrastructure project Västlänken in Gothenburg.

According to the Swedish Transport Administration, it is a sub-project at Korsvägen where cost increases have occurred, among other things, because the contractor has favored their own and related companies in procurements and in the choice of technical solutions.

Additionally, high surcharges have occurred in several stages with increased costs for taxpayers as a result.

"We view the result from the examination of Korsvägen very seriously, which shows systematic deficiencies from the contractor regarding both production and procurement efficiency", says Patrick Guné, head of the Swedish Transport Administration's Major Projects in a comment.

According to the agreement, the contractor shall bear 20 percent of the costs that exceed the target cost for the project. Now, the Swedish Transport Administration states that they will withhold payments as security for the claims against the contractor.

In a press release, the Swedish Transport Administration also writes that they have notified the contractor of a claim for a billion kronor amount.

Västlänken is an eight kilometer long loop for commuter and regional trains, mainly in a tunnel under Gothenburg's center. Three new stations under ground will be established: Gothenburg city, Haga and Korsvägen.

Gothenburg Central has since the 19th century been a so-called terminal station, where all tracks end at the station instead of being through-going. This means that arriving trains must drive out again the same way, which affects the station's capacity. Västlänken is a way to relieve Gothenburg Central.

The project is part of the so-called West Swedish package, a major investment in infrastructure in collaboration between, among others, the Västra Götaland region, the Swedish Transport Administration, and Gothenburg municipality.

Fact: The Swedish Transport Administration, Gothenburg municipality

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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