Swedish construction and development company Skanska has signed a contract with the Norwegian Road Administration for a major motorway project.

Skanska will extend the E18 motorway at Larvik between Bommestad and Sky in Norway.

The new contract is worth around NOK1.6bn ($262.4m), and will be included in order bookings for Skanska Norway for the first quarter of this year.

"The project will see Skanska expand the motorway by about 6km."

The project will see Skanska expand the motorway by about 6km and also includes tunnels, concrete culverts and a bridge over the E18.

Work on the project will begin in May, and is scheduled to be completed by July 2017.

The company is also active in the development of residential, commercial properties and public private partnerships (PPP) projects.

Skanska Norway is engaged in construction and civil engineering operations, and has about 4,500 employees.

Earlier this month, Skanska entered into a contract with the Finnish Transport Agency for a €45m project to transform Highway 8 between Raisio and Nousiainen in Finland into a motorway.

The project involves nearly 9km of highway and includes the construction of 4km of new motorway and 5km of a new lane beside the existing road, in addition to the construction of 16 new bridges on the road section.