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Riga Freeport wants to borrow up to EUR 77 million to finance Krievu Island project

Photo: Riga Free Port.
Riga Freeport authority has announced an open procedure for talks regarding a loan of up to EUR 77 million to finance the development of Krievu Island and continue relocation of port activities from the city centre to the island.

The planned loan also provides for the refinancing of the loan worth EUR 50,718,737 provided by Nordea Bank and OP Corporate Bank.

Five docks of Krievu Island are to become guarantees for the loan. As for repayment – it is planned to be carried out in instalments.

Applications will be accepted until 7 March 2018.

Among the priorities established for 2018, Riga Freeport has the realization of the second stage of Krievu Island. The freeport plans to divert EUR 36.6 million for this endeavour.

Riga Freeport CEO Ansis Zeltiņš says it is only left to build surface infrastructure for Krievu Island. ‘So far, the largest portion of funding has been invested in underground infrastructure. Plans include construction of railway infrastructure and access roads leading to the terminal. This also includes establishment of cargo storage areas and installation of infrastructure for dust reduction specific to the needs of stevedores,’ he said.

The reason for relocating cargo-handling activities to Krievu Island from Riga’s centre is preserving the city’s historic centre from noise and pollution, as well as maintain Riga Freeport’s competitiveness in the Baltic Sea region.

In 2016, State Audit finished the inspection of Riga Freeport’s realized project. Auditors concluded that the objective detailed in the application for provision of EU funding was not reached. This situation creates a risk of correction of EU co-funding up to 100% (EUR 77.2 million).

The European Commission plans to evaluate Krievu Island project in March 2019.


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