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State Aid

PR(10)21: No state aid connected with the sale of land by Hå Municipality to Risa AS



Today, the EFTA Surveillance Authority has concluded that the sale of land by Hå Municipality to Risa AS did not involve any state aid.

Under the EEA Agreement, if municipalities sell land below market value, this may be regarded as state aid.

In July 2006 the Municipality of Hå sold a plot of land which can be used for industrial purposes located at Bjorlandsmarka in the Municipality of Hå to Risa AS. On the basis of a complaint, the Authority assessed whether the price at which the plot was sold reflected the market value at the time of the sale.

The Norwegian authorities have explained that the land in question was acquired by Hå municipality from various private owners and thereafter resold to Risa AS for the same price, in addition to the municipality's administrative costs. The primary cost to the public autorities of acquiring land and buildings is an indicator for the market value unless a significant period of time has elapsed since the municipality's purchase. The transactions assessed in the present case took place approximately 2 years after the municipality's acquisition from the private owners. On this basis the Authority considers that the sale of land to Risa AS did not confer any advantage to this company. Consequently, the sale did not constitute state aid.


For further information, please contact:

Per Andreas Bjørgan,
Competition and State Aid Directorate
tel. (+32)(0)2 286 18 36


Bjørnar Alterskjær
Deputy Director
Legal & Executive Affairs
tel. (+32)(0)2 286 18 98


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