Landsnet and the Nordic Investment Bank (NIB) have signed a loan agreement in the amount of USD 50 million, about ISK 6 billion, to finance the construction of Krafla Line 3 and Hólasandslína 3. The lines are part of a new generation of local lines designed to improve energy efficiency, increase transmission capacity and security of electricity supply, not only in the area where the lines run but also for the transmission system as a whole.
Guðlaug Sigurðardóttir, Landsnet’s Chief Financial Officer, says the loan is very favorable, at a fixed interest rate and for ten years.
“It is gratifying that a loan agreement has been reached with the Nordic Investment Bank to finance two of our largest and most important projects today, Krafla Line 3, which is a connection between Krafla and Fljótsdalur, and Hólasandslína 3 between Akureyri and Hólasand. The lines are part of a new generation of local lines that are intended to lay the foundation for greener energy efficiency. Construction on the lines is progressing well and it has been a challenge to maintain a plan in times of pandemic as we are very dependent on suppliers and the correct and safe delivery of goods and services. Our task at Landsnet is to provide all parts of the country with safe electricity. Development, as it currently stands, requires a great deal of planning and coordination, in addition to which we are constantly striving to further develop the transmission system in the most efficient way possible. The agreement we signed with the Nordic Investment Bank is favorable and increases efficiency for our clients. “