The decision was made as a result of mismanagement, leaving the project at risk of increased costs and delayed completion, finance media Di reports.
According to the Swedish Transport Administration (Trafikverket), termination of the contract was due to the company in question showing “signs of a lack of ability to conduct work in a systematic environment”.
The work was also being completed too slowly, according to the project manager for the new road.
“It was not progressing at a rate with which we were satisfied,” Johan Brantmark, project manager Förbifart Stockholm with the Swedish Transport Administration, told Di.
The decision means a likely delay to the completion of the project as well as increased costs.
“On paper, a new contractor will in all probability be more expensive than the one we have today,” Brantmark said but declined to comment on specific amounts.
The Swedish Transport Administration expects to reach an agreement with a new contractor some time this year, according to the report.
Förbifart (Bypass) Stockholm is a primarily underground motorway connection that will link Kungens Kurva south of Stockholm with Häggvik to the north. Of its total length of 21 kilometres, around 18 will be inside tunnels.
The project has been ongoing since 2006 and was approved by the government in 2009. It is estimated by Di to cost 33 billion kronor. A large proportion of costs have been funded by traffic congestion charges in the capital.
Completion is currently estimated by 2026.