NIB finances Western Corridor project in Norway

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The FINANCIAL — NIB and the Norwegian system operator Statnett have signed a 15-year loan of NOK 1.2 billion. The loan contributes to finance the upgrade of the main electricity grid in South-West Norway.

The Western Corridor is a common name for the main electricity grid in South-West Norway, which includes the counties of Agder and Rogaland. Statnett expects to complete the Western Corridor during 2021 and estimates a total investment cost of approximately NOK 6.5 billion.

“The loan agreement contributes to the financing of the Western Corridor, which is an important project towards the electrical future. We at Statnett greatly appreciate having the loan agreement in place, and the good relationship we have had with NIB over many years, says Elisabeth Vike Vardheim, Executive Vice President for Construction at Statnett.

The western corridor will contribute to safe operation of the main grid, increased security of supply, as well as ensuring high utilization of the capacity of the international connections between Norway and Denmark, Germany, the Netherlands and the UK. The construction of connections to Germany and the UK is planned for completion in 2020 and 2021. The western corridor will also facilitate increased production of renewable energy.

Statnett is the transmission system operator (TSO) of the Norwegian electric power system. The Norwegian State owns the operator through the Ministry of Petroleum and Energy.

“The important Western Corridor project will facilitate electrification and increased use of renewable energy and security of supply,” says Henrik Normann, President & CEO of NIB.

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, with the leading rating agencies Standard & Poor’s and Moody’s.

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