07 Dec 2022 16:04 CET

Issuer

Avinor AS

The Avinor Board has this afternoon approved the construction of a new Bodø
Airport. A partnership between the municipality of Bodø, the Norwegian Armed
Forces and Avinor has led to the decision that will see Avinor build a new
airport that is scheduled for completion in 2029.

The cost for Avinor’s development project is NOK 7.2 billion at 2022 prices, not
including the purchase of land and excluding financing costs. This afternoon,
Avinor Group’s Board of Directors approved Avinor’s financial contribution to
the project in the amount of NOK 2.6 billion. The remainder will be funded by
the government and by local funds.

“We are pleased to make this decision following a lengthy process that has
involved the Norwegian Armed Forces and the municipality of Bodø. We are going
to build a new airport, and the urban development project will have a major
impact on the entire region,” says Abraham Foss, CEO of Avinor.

Long and winding path to a final decision
He makes no secret of the fact that the process to reach today’s decision has
been challenging for Avinor. In January of this year, the Board resolved to
postpone its decision due to several reasons, including the company’s financial
following the pandemic. Avinor’s loss of income because of COVID-19 in the
period 2020-2022 has amounted to NOK 16 billion.

“It goes without saying that this has been a difficult issue for Avinor. On the
one hand, we are keen to develop a new airport and we have always been clear
about this. The municipality of Bodø is also keen to see a new airport built
while also been given the opportunity to build a new neighbourhood. Furthermore,
the project has enjoyed broad political support in the Storting. At the same
time, this is a very costly project that will have an impact on Avinor’s
finances for many years to come. This is a big project for Avinor, the
municipality of Bodø and the Norwegian Armed Forces. It is only natural that the
path to a final decision has been rather long and winding, even if all parties
involved had a clear desire to get it over the finishing line,” says Foss.

Important clarifications
In June 2022, the Board approved its principled endorsement of the airport
project, and made it clear that a final decision to proceed with construction
would only be made when a number of key aspects of the project were fully
clarified.

“We have always been committed to securing the right allocation of costs in the
project, and on ensuring that the correct framework with all necessary
clarifications is in place between the parties. Now that enough issues have been
clarified, we are satisfied to be able to make this historic decision,” he says.

First announcement in January

The first contract to be announced will be published in the first week of
January. This will be the contract for the construction of the runway, taxiways,
aircraft stands and other external infrastructure, also referred to as ‘contract
E02 airside’.

“We are looking forward to getting to work on the project itself and we feel
that this decision finally sees us underway. ““This is a good day for the whole
of Nordland county and the town of Bodø. We are really looking forward to
working with the municipality and other partners to realise a future-oriented,
modern airport,” Foss concludes.

The new Bodø Airport will be located around 900 metres to the south of the
present airport. The airport is scheduled to be open and operational in 2029,
with its official opening expected in 2029/2030.

The current airport will remain operational until the day before the new airport
opens for operations.


Source

Avinor AS

Provider

Oslo Børs Newspoint

Company Name

Avinor AS 13/28 4,45%, Avinor AS 20/31 2,38%, Avinor AS 20/26 FRN

ISIN

NO0010675903, NO0010881238, NO0010881246

Market

Oslo Børs