NIB Partners with Latvian Air Transport Infrastructure Company LGS to Advance Air Navigation Technologies

(IN BRIEF) Nordic Investment Bank (NIB) has entered a nine-year loan agreement with Latvijas Gaisa Satiksme (LGS) to co-finance its investment program for air navigation advancements from 2024 to 2026. The EUR 25 million loan will support the modernization and expansion of air traffic control systems, including the construction of a new Air Traffic Control (ATC) Tower and advanced air navigation technology. These upgrades aim to enhance air traffic control safety, reduce fuel consumption, lower emissions, and minimize noise, in alignment with the objectives of the European Green Deal. LGS, the Latvian air transport infrastructure company, operates within a regulatory framework defined by national and EU legislation, with the Ministry of Transport of Latvia as its sole shareholder. This partnership reflects NIB’s commitment to financing projects that promote modernization, sustainability, and efficiency in the aviation sector.

(PRESS RELEASE) HELSINKI, 8-Apr-2024 — /EuropaWire/ — NIB has signed a nine-year loan with Latvian air transport infrastructure company Latvijas Gaisa Satiksme (LGS) to co-finance its 2024–2026 investment programme for air navigation advances.

The EUR 25 million loan has been provided to upgrading and expanding the air traffic control systems, including the construction of a new Air Traffic Control (ATC) Tower and an advanced air navigation system. These enhancements will improve air traffic control safety, reduce fuel consumption, lower emissions and minimise noise, aligning with the objectives of the European Green Deal.

The driving force behind the investments is the need to modernise the existing infrastructure, which is no longer suitable for the airport’s needs and is hindering the introduction of modern technologies. The new facility will also allow the introduction of Remote Control Tower technology for other airports in Latvia, facilitating centralised air traffic control.

“The project aligns with Latvia’s modernisation and sustainability objectives. Through our collaboration, we aim to drive positive change, enhance air traffic control, and contribute to a more efficient and sustainable aviation sector,” said André Küüsvek, President and CEO of NIB.

“The construction of the new air traffic control tower and the related modernisation of air traffic control systems is currently the biggest project for LGS, the implementation of which is important not only for the company but for the development of Riga Airport’s air traffic centre and for further air traffic safety and efficiency improvements. It is therefore of great importance that we have gained a strong and trustworthy partner in NIB, which will help us secure a significant part of the funding necessary for the construction and modernisation of equipment on favourable terms,” emphasised Dāvids Tauriņš, Chair of the Board of LGS.

Latvijas Gaisa Satiksme LGS operates the air transport infrastructure in Latvia, which is integrated into the European and global air traffic management network. LGS functions within a regulatory framework defined by national and EU legislation. The sole shareholder of LGS is the Ministry of Transport of the Republic of Latvia.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, from the leading rating agencies Standard & Poor’s and Moody’s.

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First published in this link of EuropaWIRE.