New Norwegian funding option for domestic operators

The new model will be available for projects in which newbuildings or retrofits are to be undertaken in Norwegian shipyards and deployed in domestic trades.

Otto Søberg, Eksportkreditt ceo (pictured), explained that EU approval of the new scheme has not been necessary because the terms of the financing are based on commercial interest rates available in the market. Under the financing provisions, up to 80% of capital cost can be financed over a term of up to 12 years at a combination of fixed and floating interest rates, provided the project can demonstrate Norwegian content of 30% or more.

Funding is available only from delivery; construction finance must be found elsewhere. The scheme is also available for Norwegian equipment manufacturers, including those providing ballast water treatment systems, for example.

Although the new law will only officially enter force on 1 July, 12 applications for funding have already been received from parties including fishing, aquaculture and ferry operators, and are being processed. The new scheme, Søberg said, is a move to support the country’s shipyards which have paid a heavy price following the offshore downturn. Presentations made recently to shipbuilders and some of their fishing and ferry clients have caused considerable excitement, he added.

All of the applicants so far have been Norwegian, but it appears that there is no obstacle to overseas companies establishing limited companies in Norway and taking advantage of the funding scheme.