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PR(95)10: EFTA Surveillance Authority authorises shipbuilding development aid by Norway to Indonesia

18.10.2002

The EFTA Surveillance Authority today authorised a Norwegian proposal to grant shipbuilding aid as development aid to Indonesia. This decision was taken under rules parallel to the Council Directive on aid to shipbuilding (90/684/EEC), which were integrated into the EEA Agreement with effect from 1 May 1995.

The aid in question is to be awarded in relation to a contract to build a research vessel for the Indonesian Institute of Sciences at a Norwegian shipyard. The contract price of the ship is approx. NOK 140 million, which, considering the technical specifications, the Norwegian Government deems to be market price. The ship has a gross tonnage (GT) of approx. 800 (300 DWT) and is equipped with a 1330 KW engine and a range of navigation and research equipment.

The aid will take the form of a financing arrangement on concessional terms, to be provided by the Norwegian Agency for Development Co‑operation (NORAD), in favour of the Indonesian Ministry of Finance.

The transaction involves a 100% credit to be repaid in 18 equal annual instalments, the first falling due 7 years after the last disbursement. The loan will bear an interest rate of 3,5% p.a. The credit terms are expected to imply an OECD grant equivalent of 45,9% of the total cost of the vessel.

On the basis of the Norwegian Government's notification the Authority has examined the proposed aid in relation to the criteria laid down for this purpose in its State Aid Guidelines, and has concluded that all their relevant requirements are fulfilled.

The project will benefit from Norway's maritime experience, i.a. as the Norwegian authorities will also support a training programme related to the research vessel. The technical expertise of the donor will thus be utilised for the benefit of the recipient country. The project is therefore expected to contribute to the economic development of Indonesia. The EFTA Surveillance Authority has consequently decided to authorise the aid.

For further information please contact Gudlaugur Steffansson (Competition and State Aid Directorate) on tel. 286 18 52.




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