Norwegian tolling operator Vegamot has awarded Q-Free a contract to design, deliver and service tolling roadside equipment for Bypakke Ålesund – the policy package for the city of Ålesund.
Project deliveries, including that of a single gantry system, will be completed in 2022, but the contract is mainly structured as a service contract that will generate annual recurring revenues over a period of 15 years.
The recurring revenue element of the contract will exceed Q-Free’s announcement threshold of NOK 2.5 million (£208,000) per year. In order to ensure that Q-Free can maintain its competitiveness on future call-offs, the exact amount will not be disclosed yet.
Håkon Volldal, president and CEO, Q-Free, said: “This represents the first call-off on the frame agreement we signed with Vegamot in October and a nice win for Q-Free.
“The contract structure supports our efforts to shift our business model towards annual recurring revenues. We look forward to deploying our single gantry system in Ålesund and help the region finance efficient and sustainable mobility solutions.”