ANNOUNCEMENT 02 Mar 2016

In March 2016, the Nordic Investment Bank (NIB) signed a loan agreement with RARIK ohf to replace 1,450 kilometers of overhead lines with underground cables.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

NIB press release, 19 February 2016, NIB finances improved security of electricity supply in Iceland
https://www.nib.int/releases/nib-finances-improved-security-of-electricity-supply-in-iceland

NIB agreed loan, Iceland. RARIK ohf, 02 Mar 2016
https://www.nib.int/loan/rarik-ohf-22196

Inception date: 02 Mar 2016 | Removal date: open ended

State loan

On 2 March 2016, the Nordic Investment Bank (NIB) signed a EUR 25 million (USD 27.1 million) loan agreement with RARIK ohf to support the installation of underground cables which will improve the secure supply of electricity in the country. The loan has a duration of 15 years.

RARIK is the public energy company of Iceland. It operates 90% of the electricity distribution system.

The NIB is an international financing bank and is jointly owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank provides financing to private and public projects mainly located in the eight countries at attractive conditions. The eligibility criteria of NIB financing is that: "All projects financed by NIB should improve competitiveness and/or the environment, in accordance with NIB's mandate and eligibility criteria. Furthermore, outside the membership area, projects financed by NIB should be of mutual interest to the country of the borrower and the member countries."

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.

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