Contract signed regarding the extension of the runway

P/F Vagar Airport has today signed a contract with J&K Petersen Contractors P/F, regarding the extension of the runway up to 1799 metres.

The contracted amount for this project is DKK 131 million. The project encompasses the establishment of a security zone on the southern side of the airport, a levelling of the security area on the northern side, filling of the runway ends with 350 metres eastward and 200 metres westward, respectively, apart from a new security zone of 150 metres at both runway ends. The project also covers new in-flight approach lighting, a new tower cap and the demolishing of various buildings.

The entrepreneur will commence preparations immediately and work is expected to begin in April/May. The whole project is expected to conclude at the close of 2011.

Apart from this project, other additional work will also be done, such as the delivery and erection of new in-flight approach equipment, as well as expenditure for land expropriation, construction leadership and various control procedures, etc,.

Due to the lower than anticipated tender, the total cost of lengthening the runway has been revised and the new estimation total is DKK 221 million with an uncertainty margin of + - DKK 6 million. This is significantly lower than the October 2009 estimation, which put the project at DKK 286 million with an error margin of + - DKK 22 million.

The large discrepancy between the two estimations derives mainly from significant changes within the construction/building market, since the first estimation was complied and the competitive edge of J&K Contractors, which has the Faroes as their home market.

P/F Vagar Airport is most satisfied that the contract regarding the extension of the runway has now been signed and finalised, and is looking forward to a good working relationship with J&K Petersen Contractors, on this most important project.