Denmark’s million-dollar grant for Greenlandic airport construction was kept secret until July 2.
The Danish state has invested extra money in the construction of an international airport in Ilulissat, Greenland.
Jyllands-Posten writes this based on a document that has been confidential until July 2nd.
The document states that “the financing need is urgent”, as it is assessed that the company behind the airport – Greenland Airports International – no longer has the opportunity to take out a commercial loan.
This is because “the company has become aware of a number of flawed assumptions in the company’s business plan”, which has resulted in Greenland Airports International’s valuation being lower than expected.
The document, dated June 18, has been kept confidential due to the company’s financial interests.
400 million more grains
It is Finance Minister Nicolai Wammen (S) who has requested the Danish Parliament’s Finance Committee for additional funds for the Greenlandic airport construction.
In total, the grant amounts to a construction grant of 400 million kroner and a new loan limit of up to 1,140 million kroner.
According to the document, the 400 million kroner must be taken from the reserves in the Finance Act for 2025.
There will be no possibility of taking out new loans for the airport construction, the document states. And all loans must be repaid in 2052.
According to Jyllands-Posten, Nicolai Wammen has also previously raised more money for the construction of the two international airports in Greenland – in Nuuk and Ilulissat.
In 2022, a loan limit of 450 million kroner was expanded to 600 million kroner because the construction turned out to be more expensive than expected.
The Danish state had previously provided a financial contribution of 1600 million kroner for the construction of the two airports.
The international airport in Nuuk was completed in November 2024. The airport in Ilulissat is expected to be ready in 2026.
The Danish state owns 33.3 percent of Greenland Airports International, while the Greenlandic Self-Government holds the remaining ownership stake.