Veidekke

Regulatory Filings • Apr 12, 2023

Veidekke: Building Feios power plant in Vik in Sogn

Veidekke: Building Feios power plant in Vik in Sogn

Veidekke has been commissioned by Sognekraft Produksjon AS to build a new

hydropower plant at Feios in Vik municipality in Sogn. The contract that has

been signed is a design and build contract valued at around NOK 500 million

excluding VAT. Development of the project started as early as 23 years ago.

This has been a unique project that Veidekke formally started in 2001 when

agreements with the landowners on waterfall rights were concluded. The following

years were used to further develop the project and bring in partners on the

ownership side. From 2005, impact assessments, licence application,

consideration by various bodies with consultations and changes continued right

up to 2013, when the licence for the power plant was granted. However, the

project was shelved due to low power prices and high costs for high-voltage

transmission. Now, the power market in Norway and Europe has changed, thus

creating the conditions for finally implementing the project.

"The development and construction of power plants places high demands on

technical knowledge, experience from tunnel construction and not least

comprehensive interdisciplinary understanding. Veidekke has a long and proud

tradition of developing and building hydropower plants in Norway, so we are very

pleased to become involved in a new project now so that our expertise is

preserved. We would like to thank Sognekraft Produksjon for the commission and

are really looking forward to finally bringing about this green power project,"

says project director Bernt Wilhelmsen with Veidekke Anlegg.

Feios power plant will produce approximately 100 GWh annually, which corresponds

to the consumption of 5,000 detached homes with an average annual consumption of

20,000 kWh. The height of the fall from the topmost water intake will be 435

metres, and the power plant will include two dams, five stream intakes, more

than nine kilometres of tunnels and a power station in a cavern with two

turbines with a combined capacity of 8,000 litres of water per second.

Construction has already started, and completion is scheduled for the spring of

2026. See more about the project at www.sognekraft.no/feios-kraft-dml-plan. This

contract is included in Veidekke's order book for the first quarter of 2023.

For further information, please contact:

Project Director Bernt Wilhelmsen, tel. +47 94 16 91 19,

bernt.wilhelmsem@veidekke.no

Communications Manager Helge Dieset, tel. +47 90 55 33 22,

helge.dieset@veidekke.no

Development Manager Harald Fimreite, Sognekraft Produksjon, tel +47 91 80 57 68,

harald.fimreite@sognekraft.no

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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking

all types of building and civil engineering assignments, the group also

maintains roads and produces asphalt and aggregates. Veidekke emphasises

stakeholder involvement and local experience. Annual turnover is approx. NOK 39

billion, and almost half of its 8,000 employees own shares in the company.

Veidekke is listed on the Oslo Stock Exchange and has posted a profit every year

since its inception in 1936.