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EBRD lends US$ 14.2 million for urgent upgrading of Tallinn Airport
Tallinn Airport, Estonia's only airport with scheduled international services and in urgent need of upgrading, will maintain and improve its international flight services with a US$14.2 million (ECU 12.56 million equivalent) loan from the European Bank for Reconstruction and Development to the State Enterprise Estonian Airports.
Ron Freeman, First Vice-President of the EBRD, commented: "This loan meets Tallinn Airport's most urgent needs and brings it up to international standards. In so doing, we ensure that the airport can continue to provide international flight services to many capitals in Europe and the former Soviet Union. In the longer run, the upgraded airport will be able to handle more flights, with obvious benefits to the Estonian tourist and business industries."
Tõnu Mardo, General Director of State Enterprise Estonian Airports, said: "This project is particularly welcome in light of the increase in international traffic, which has gone up by 30% for passenger traffic and doubled for cargo traffic, and in light of the need to comply with international safety standards".
Originally constructed in the 1920s, Tallinn Airport now faces immediate demands for upgrading of various aspects of the airport. The EBRD loan will finance the most important of these demands, such as upgrading the existing runways and taxiways as well as the provision and installation of new runways and taxiways; and the provision and installation of new approach lights. In addition, the proceeds will also be used to increase the load bearing capacity of the runway to allow larger aircraft to land; and to support the development of an appropriate institutional and regulatory framework for the Estonian airport system.
The total cost of the project is US$ 17.3 million (ECU 15.3 million equivalent), which includes funding from the State Enterprise Estonian Airports of US$ 3.1 million (ECU 2.7 million equivalent).
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