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State Aid

Property deals : Narvik municipality did not use illegal aid in sale to LKAB

16.6.2010

Today, the EFTA Surveillance Authority has concluded that several transactions between the municipality of Narvik and Luossavaara Kiiruunvaara Norge AS (LKAB) did not involve state aid.

If municipalities sell land below market value or otherwise enter into particularly favourable contracts with private companies, this may be regarded as state aid under the EEA Agreement.

In 2004, Narvik municipality sold several areas of land to LKAB. In 2005, LKAB agreed to deliver blasted stone bulk (a by-product of a construction project) to the municipality. Finally, Narvik municipality and LKAB entered into a contract in 2009, in which the amount of stone bulk to be delivered was reduced. In addition, Narvik municipality transferred land in the Lundbergsjakta and Framnesodden areas to LKAB, whereas LKAB transferred several areas to the municipality.

On the basis of a complaint received in 2009, the Authority has assessed and concluded that the transactions were concluded on market terms and, thus, that no state aid was involved.

 

For further information, please contact:

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

Katarina Kraak
Officer,
Competition and State Aid Directorate
tel. (+32)(0)2 286 18 13




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