NIB to provide £57m loan to redevelop two airports in Greenland

WCN Editorial Team 22 Jul 2019 NORTH AMERICA TRANSPORT INFRASTRUCTURE

Nordic Investment Bank (NIB) has agreed to provide €63.3m (£57m) to Kalaallit Airports International, the state-owned company to develop airports in Greenland, for the redevelopment of Nuuk and Ilulissat international airports.

Kalaallit Airports International aims to complete the redevelopment of the Nuuk and Ilulissat airports by the end of 2023.

The loan from NIB will co-finance a new 2,200m runway at Nuuk, a new terminal area, a new passenger terminal and a new tower, along with a new runway of 2,200m, a conversion of an existing 845m of runway into an access road, a new terminal and technical building, and a new tower, at the Ilulissat Airport.

The new airport structure in Greenland will redirect transatlantic flights from Kangerlussuaq to Nuuk and Ilulissat. Nuuk is expected to become the main hub for the country.

As per NIB, the loan will help to establish a sound airport infrastructure in Greenland. It will also help in improving transport connections, increase direct flights and airline operators, reduce travel time costs and can also reduce CO2 emissions from domestic air traffic in the country.

Nordic Investment Bank president and CEO Henrik Normann said: “Expanding the key infrastructure in Greenland will reduce market barriers, facilitate competition and increase economic opportunities for fisheries, mineral production, eco-tourism and research.”

Kalaallit Airports International is owned by Government of Greenland with 66.67% stake and Government of Denmark owning the remaining 33.33% stake. It will develop and operate the Nuuk and Ilulissat airports.

In 2017, NIB provided €201m (£181m) in financing for the construction of a new pier at Stockholm Arlanda Airport, outside Stockholm, Sweden.

The loan financed the expansion of Terminal 5 at Stockholm Arlanda Airport. The new pier will add 14 new aircraft stands that can receive larger types of aircrafts. Additionally, higher capacity and new technology for baggage facilities will be added.

The project was part of Swedavia’s larger investment programme for improving the infrastructure, levels of service and traffic volumes at a number of airports.

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Image: Nuuk airport in Greenland. Photo: Courtesy of Nordic Investment Bank.

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