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The Swedish National Rail Administration recently awarded contracts to begin work on the $1.3 billion Citytunnel project, which is designed to link southern Sweden’s railway systems and increase capacity.

The administration awarded a $329 million contract to Malmo Citytunnel Group — a consortium comprising Bilfinger Berger AG, Per Aarsleff A/S and E. Pihl & Son A/S — to drill two parallel 3.7-mile tunnels between Malmo C and Holma, and excavate the rock cavity for a new Triangeln underground station.

The agency also awarded a $171 million contract to NCC International AB to construct the Malmo C Nedre underground station.

Finally, the rail administration awarded a $42 million contract to NCC Construction Sverige AB to complete groundwork, and build bridges between Holma and Oresund. The company also will construct Citytnnel from the southern tunnel entrance to the Oresund connection, and connect tracks to Ystad and Trelleborg.

Scheduled to begin in early 2005, the Citytunnel project is expected to be complete in 2011.