LGS to receive EUR 25 million loan from Nordic Investment Bank

08 Apr 2024

State joint stock company “Latvijas gaisa satiksme” (LGS) will receive a loan of EUR 25 million from Nordic Investment Bank (NIB) for the purpose of upgrading and expanding its air traffic control system. The funds will be used to construct a new air traffic control tower and state-of-the-art air navigation system. The loan maturity date will be end of 2038.

The loan agreement between NIB and LGS was signed on 5 April 2024.

The air traffic control tower at Riga Airport, built in 1973 and still in use today, no longer suits the needs of the rapidly developing airport. The new technologies, which will be implemented in the course of modernisation, will also allow for introduction of a Remote Control Tower, thus allowing remote control of aircraft take-off and landing at other airports in Latvia.

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

“We are proud to co-finance this upgrade and expansion of LGS’s air navigation infrastructure. The project aligns with Latvia’s objectives for modernisation and sustainability, and 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.

On 22 December 2022 the Connecting Europe Facility Transport Committee supported the project submitted by SJC “Latvijas gaisa satiksme” (LGS) with co-funding in the amount of 50 % or EUR 26.263 million for upgrading air traffic infrastructure and adapting it for dual use, i.e., for both civilian and military purposes.

NIB is an international financial institution owned by eight member states: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank has lending operations both in and outside its member states. NIB holds the highest possible credit rating (triple A) as assigned by Standard&Poor’s and Moody’s.

State joint stock company “Latvijas gaisa satiksme” was founded in 1991, and it provides safe and optimal air traffic navigation services to all users of the Latvian airspace. The sole shareholder of LGS is the Ministry of Transport of the Republic of Latvia.