The European Investment Bank (EIB) is to provide loan financing for two projects in Denmark for a total amount of Danish Kronor 996 million / EUR 134 million (1). Both projects support technological upgrades and innovation in the provision of public services.
The EIB loan supports the construction of a new production facility for Radio and TV programmes in the Orestad development area in Copenhagen. A loan for this project was signed in Copenhagen with Danmarks Radio (DR) for the amount of Danish Kronor 795 million / EUR 107 million . The project will allow DR to ensure the delivery of high quality services by upgrading the facilities used for the preparation and execution of its broadcasting services. The project consists of introducing more advanced digital and state-of-the-art technology in a new central production facility in Orestad , Copenhagen, as well as to upgrade its regional broadcasting equipment and mobile production units to the same technical standards. The new audio-visual programme production centre in Orestad, also to become a centre for educational and cultural institutions, is a key element of DR's overall strategy for the future.
The EIB's financing will complement the financing DR is raising from commercial Danish and international banks for its investment programme. Mr Thomas Barrett, EIB Director, who signed on behalf of the EIB, commented "The EIB is pleased to finance the further development of public service broadcasting in Denmark. This project is consistent with the objectives of the EIB's Innovation 2000 Initiative on the "knowledge economy " by developing the audio-visual industry and introducing new on-line services". Mr Barrett added "public service broadcasting has an important role to play in ensuring cultural diversity in the European Union, in guaranteeing objective information and supplying quality entertainment".
Anders Kronborg, who is Director of Resources in Danmarks Radio, says: "The Ørestadsproject is an important part of reaching the strategic goals of the future in Danmarks Radio. As the project is developing according to plan we expect to move the entire Copenhagen based activities to Ørestaden in 2005. The signing of the loan in EIB is yet another step in completing this plan and it has been a pleasure to do business with the bank." And he adds: "The conditions of the loan mean that the financing of the project looks very healthy and well inside the plans and limits we are working within."
The European Investment Bank (EIB) also signed a loan with Post Danmark A/S for an amount of Danish Kronor 201 million / EUR 27 million (1) to upgrade its letter distribution system in different locations in Denmark and installation of a new automated parcel distribution system. Mr Barrett commented, " The project financed by EIB is designed to increase service quality and will enable Post Danmark to develop its services further and to compete more effectively in the international market for postal services."
The AAA-rated European Investment Bank (EIB), the financial arm of the European Union, contributes by means of its long-term loans towards the integration and balanced development of its Member States as well as in countries outside the Union. In Denmark, the EIB has extended loans since 1995 totaling over EUR 5.5 billion for infrastructure investments, notably roads, railroads, bridges and telecommunication as well as investments within the energy, health and education, environment and the industry sector. In addition to large projects, the EIB has financed small and medium-sized public and private investments through credit lines (Global Loans) to financial intermediaries.
(1) EUR 1 = DKK 7.4551 on 19.06.2001