Greenland Airports International is negotiating with the Self-Government and the State for a loan of an additional DKK 1.1 billion for the construction of the two airports in Nuuk and Ilulissat. The benefits for Greenland will exceed the additional costs incurred in the construction, according to Greenland Airports.
Large construction projects often become more expensive than initially estimated, and the airport projects in Nuuk and Ilulissat are no exception.
Large construction projectsAnnouncement
Greenland Airports has just published annual reports for the companies in the group, and it appears that additional financing of DKK 1.1 billion is needed to complete the airport construction in Ilulissat.
The original financing plan from 2019 was approximately DKK 3 billion for the two new international airports.
The price has continuously increased and a statement in the accounts shows that the bill is now expected to run up to 4.8 billion. DKK.
Increased regulatory requirements and increased facility requirements
Technically, it is the company Greenland Airports International that is building and operating the two new international airports.
The company’s management report states that it is negotiating with the owners, who are the Self-Government and the Danish state, about a need for financing of 1.1 billion. DKK:
– The company is in dialogue with the owners about the remaining long-term financing of the Ilulissat airport construction. A long-term financing framework of DKK 1,100 million is needed, as well as a framework to meet the risks generally associated with a large construction project, the management report states.
Greenland Airports informs Sermitsiaq that this will be a loan and not a deposit from either the self-government or the Danish state.
The company states that, among other things, increased regulatory requirements and increased costs for the facilities have been incorporated, and operating costs have also been included in the start-up period.
Greenland Airports informs Sermitsiaq that they are convinced that the projects are both economically and socially soundly founded, and that the benefits for Greenland far exceed the additional costs that have been incurred.
– We are already seeing the effects in Nuuk, where the new international airport has provided better accessibility and opened up new opportunities for both citizens and businesses, says Greenland Airports in a written response.
2.6 billion DKK invested in Nuuk – opening has required great effort
In 2024, Greenland Airports passed a major milestone with the opening of the airport in Nuuk.
It appears from the annual report that the company has spent 2.6 billion DKK on the construction of the airport in Nuuk so far.
– This is divided into 464 million DKK on buildings, 1,691 million DKK on the track, 442 million DKK on other facilities, operating equipment and inventory and 8 million DKK on software and licenses, it says.
CEO Jens Lauridsen states that the opening in Nuuk has affected the entire Greenland Airports and demanded a lot from employees across the entire organization – and also at all the other airports:
– It is a very extensive task to open a new, international airport. It involves hundreds of employees and a wide range of processes, and I will not hide the fact that there have been many lessons learned and routines that we had to incorporate, says the director and continues:
– This has been a demanding experience for our employees, partners and travelers alike. In recent months, we have identified a number of areas where we can improve our processes. This work will continue to ensure that everyone has an easier and smoother journey.
Ilulissat and Qaqortoq are still expected to open in 2026
Greenland Airports is therefore still working on the construction of the airport in Ilulissat and a new airport in Qaqortoq. Both airports are still expected to open in 2026.
– The airports in Ilulissat and Qaqortoq will become important levers for tourism, business development and mobility – just as the new airport in Nuuk already is. We are not only building for today, but for future generations, and at Greenland Airports we are proud to be part of opening up opportunities for Greenland, says Jens Lauridsen.
The airport in Qaqortoq has a budget of 1 billion DKK and the total bill for the three airports is therefore expected to land at 5.8 billion DKK.