|
Latvia to receive US$ 12.1 million from European Bank to rehabilitate Riga International Airport
The Board of Directors of the European Bank for Reconstruction and Development yesterday approved a loan of US$ 12.1 million (ECU 10.0 million equivalent) to the Riga International Airport Enterprise to rehabilitate the existing runway, part of the taxiways and the lighting system. The loan is to be guaranteed by the Republic of Latvia.
The project will also provide consulting services for final design, tendering, construction supervision and general managerial and accounting capabilities as needed.
Mario Sarcinelli, Vice President of the European Bank, said: "The main objective of this loan is to ensure aviation safety according to ICAO standards and recommended practices, and to keep open the only airport in Latvia with scheduled traffic. Through the proposed project, the European Bank will play an important role in making the airport authority a corporation operating within an appropriate regulatory framework."
The total cost of the project is US$ 13.2 million. The local cost of US$ 1.1 million would be financed by the borrower with internally generated funds, while the proposed Bank loan of US$ 12.1 million would finance the foreign exchange costs.
|
