Funding has been approved to begin building a tunnel beneath Vaðlaheiði, the slope opposite Eyjafjörður from Akureyri, offering a shorter trip for those driving route 1 who would otherwise have to drive around the mountain.

Last June, Alþingi approved the potential financing of the tunnel construction, with the Minister of Finance, Steingrímur J. Sigfússon, approving the construction firm for a loan of up to 8.7 billion ISK, RÚV reports. The total cost of constructing the hill underpass is expected to be 11.5 billion ISK and construction will begin in June 2013.