Sweden-based Nordic Construction Company (NCC) has won a Skr440m ($67m) contract to build a 2.5km tunnel in the Hordaland region of Norway.

The contract also includes the construction of 3.6km of road, a footpath, bicycle path, bridges, a sewer and phone systems.

The tunnel project forms a part of the expansion plan of the E16 highway between Oslo and Bergen and NCC work has already began on the first phase by building the Dalsfjord Link.

Work on the new tunnel will start later this month and is scheduled to be complete in December 2013, serving an average of 4,000 vehicles a day.