Commission has approved investments for reconstruction of Palanga Airport
Christian Fernsby ▼ | August 2, 2021
The European Commission has approved a public support measure for Palanga Airport in Lithuania in accordance with the European Union state aid rules.Article continues below
It is planned to allocate 10.25 million. EUR 1 million for investment aid for the modernization of airport infrastructure: the reconstruction of the airport runway, taxiway, southern and northern aircraft platforms and the modernization of engineering systems.
The European Commission (EC) assessed the measure under EU state aid rules, in particular under the 2014 Guidelines on State aid to airports and airlines.
The EC found that the funding would improve connections from and to Palanga and facilitate the development of the region, and emphasized that the aid was proportionate and kept to a minimum, not exceeding the lack of funding for capital expenditure and the maximum allowable aid intensity. In addition, the EC has determined that the aid is not likely to adversely affect the situation of other airports in the same accessibility zone.
2020 The Latvian company ACB won the public procurement of the Palanga Airport runway reconstruction contract announced by Lithuanian airports in autumn 2017, which already has similar experience in the reconstruction of Vilnius Airport runway in 2017. The winning company undertook to perform all the planned works for LTL 13.6 million. EUR (excluding VAT). The remaining part of the total reconstruction investment (in addition to the investment package approved by the EC) will be covered by a loan from the Nordic Investment Bank.
During the main stage of reconstruction from September 6, 2021, the operation of Palanga Airport will be suspended for the shortest necessary period 45 days. ■ What to read next
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