Swedish builder Peab has won a $300m contract to build the New Bodø Airport in Norway’s Arctic Circle from state airport operator Avinor.

Peab will build a new runway, taxiways and parking spaces for aircraft.

Preparatory work started last year with groundwork, demolition of old infrastructure, and blasting.

Peab was involved in the development phase of design and costing.

Businesses and people in the region had lobbied the Norwegian government for years to fund a new airport to replace Mo i Rana in Nordland county because its runway is too small for jets to land.

“This is a historic contract and the largest Peab has received in Norway,” said Johan Hansson, MD Peab Civil Engineering Norway, calling it “a big boost for the entire Bodø region”.

He added: “This is a complex project that requires good coordination and collaboration between all parties involved.”

Construction starts now, with completion expected in June 2028.