1. Country Rapport – Faroe Islands September 18th, 2008
Oyvindur Brimnes, Director
Landsverk
Oyvindur Brimnes, Director

2. The Faroe Islands
Size: The Faroe Islands consist of 18 islands. The landed area of the country compromises 1,399 km2; and the archipelago is 113 km long and 75 km wide. The shoreline is 1,100 km
Population: On January 1st, 2008, the population on the Faroe Islands numbered , of which live in the capital Tórshavn
Connections: In 2006, 72% of the landed area and 86 % of the population was connected.

3. The Faroese Road System
Today, the total road system on the Faroe Islands is almost 1,000 km.
460 km are state roads
500 km are municipal roads.
All state roads and most municipal roads are paved with asphalt.

4. The Financial Budget Today, the budget for maintenance is DDK100/m50
100
150
200
250
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Year
Gross National Product
Number of vehicles
Traffic work on State Roads
Length of roads
Appropriation for maintenance of State Roads (management)
Employees at Landsverki
Index 1995 = 100

5. Maintenance and Investments - 1998 - 2007

6. Very Little Competition
The Faroe Islands are a micro-society, therefore there is a slim market, and very little competition. On the other hand, it is easier to get an overall view of the market.
Contractors: Today, there are two local contractors and two contractors from other countries operating on the Faroe Islands
Consultants: Today, there are three local consultants and three consultants are operating from other countries.

7. We don’t follow the trend
New investments – Landsverk outsources
However, we plan, design and build smaller projects in house
Reasons:
Lack of competition
Keeping the expertise in house

8. We don’t follow the trend
Maintenance – all in house
Reason:
little competition ( e.g. we are able to produce three times the demand of asphalt)
Advantages:
Flexibility ( e.g. preparedness in connection with nature disasters)
Knowing the local areas ( e.g. winter maintenance)
Less need for control of the work
Less need for detailed demand-specifications.
Disadvantages:
might loose focus on efficiency and innovation

9. How is Landsverk organized?
To ensure efficiency, Landsverk tries to organize itself in the same way as the private sector.
For maintenance, Landsverk is organized into the following departments:
Building Commissioner and Consultant Department
Contractor Department
Production Department
The departments function as individuals, and therefore the departments buy services from each other ( Such as rental of machines)

10. Future Links - The Eysturoyar Tunnel and The Sandoyar Tunnel
There has been much discussion about the future links on the Faroe Islands. Especially when it comes to financing
BOOT contra Public Financing.
The discussion has lead to the Faroe Islands being without government these days.

11. Thank You !