Opened on 11 July 1998, it shortens the distance from Reykjavík to the western and northern parts of the country by 45 kilometers (28 mi).

[1] This project was a milestone in Icelandic construction as it was the first private finance initiative without direct funding by the state treasury.

The tunnel was designed for annual average daily traffic of 5,000 vehicles.

[1] Previously, the toll for vehicles less than 6 meters (20 ft) in length was ISK 1,000 (USD 9.80).

The original plan assumed it would take 20 years (until 2018) to pay back the cost of building the tunnel, but the traffic volume has proved to be significantly higher than originally projected.