Norwegian state airport operator Avinor has chosen Swedish construction group Ratos to build a greenfield airport inside the Arctic Circle.

Bodø Airport will be built by its HENT subsidiary, which will work with Avinor on the scheme’s design and cost specification, after which the job will be carried out as a turnkey contract.

The $720m airport, which is located about a kilometre south of the one it is replacing, will have a 25,000-sq-m of terminal and operational buildings.

When it enters service in 2029, it will be able to handle up to 2.3 million passengers a year.

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 was too small for jets to land. It said it would if local businesses raised $17m toward its cost.

HENT beat two other teams to the $228m contract. The company’s chief executive, Jan Jahren, said: “The entire bid process was long and thorough. We used the full breadth of the company’s expertise, together with several external partners.

“The teamwork behind our responses to the award criteria, including price, understanding of the task and project organisation, meant that we won out over the competition. This is important recognition for all of HENT and our partners.”

In April, another Swedish builder, Peab, was picked to build the airport’s runway, taxiways and parking spaces.

As well as the airport, Avinor plans a new business district to cement Bodø’s role as an aviation city and hub for connecting north and south Norway.