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The European Commission has authorised under EU state aid rules a grant from the European Cohesion Fund to the Klaipeda Port authority for the extension and improvement of quays for the new passenger and freight ferry facility in Klaipeda (Lithuania). The Commission concluded that the measure was necessary in order to improve the accessibility of Lithuania by sea and boost regional development, while not compromising the functioning of the neighbouring ferry terminals.
"Sea ports are crucial for an efficient and sustainable transport network. Port projects may require capital investments that can be recovered only in the v ery long term. Public funding for such projects is acceptable, if it is necessary to cover the costs of the project and it contributes to a well-defined objective of common European interest without unduly distorting competition," said Joaquin Almunia, Commission Vice-President in charge of competition policy.
Currently, the port of Klaipeda is accessible only for small-draught ferries and its infrastructure does not allow to provide safe, efficient and high quality services.
With support from the European Cohesion Fund, the Klaipeda port authority will invest 28 million euros to extend and improve the existing quays in order to accommodate more and bigger ferries.
A private investor who will operate the new cargo passenger terminal, Klaipedos keleiviu ir kroviniu terminalas, will carry out the other necessary investments related to that terminal, which are worth approximately 21 million euros.
The Commission found the support from the Cohesion Fund to be in line with EU rules allowing state aid to support certain economic activities (Article 107(3)c of the Treaty on the Functioning of the European Union – TFEU) because:
– the port authority has carried out an open tender for the selection of the company that will build the new infrastructure in order to keep the construction cost to the minimum;
– rental payments for quays are dependent on the quantity and quality of the infrastructure provided and their adequacy has been confirmed in an independent assessment;
– the public financing corresponds to the identified funding gap;
– the new ferry terminal is important for the accessibility and development of the region, while not compromising the functioning of neighbouring ferry terminals.
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