For half a year, Narvik mayor Rune Edvardsen (Labor Party) has walked in and out of the doors of the Storting building in Oslo. He has slept on benches and got up early to get the right people talking. The goal has been to convince politicians to sell an important industrial site in the city to the municipality. The giant site is located at the closed airport in Narvik. Ever since the closure in 2017, there has been a fierce battle to get a claw in the area that is referred to as Narvik’s tenderloin. Now it may look like the mayor has been paid for the effort. Budget partners agreed On Thursday, it became clear that both the Labor Party, the Center Party and the Socialist Left Party have agreed to sell the plot to the municipality. Thus, they have a majority in the Storting, which will consider the matter on Friday. – We will offer the municipality a direct sale of the state’s land on market terms, says Minister of Local Government Sigbjørn Gjelsvik (Sp) to news. MINISTER: Sigbjørn Gjelsvik (Sp) is Minister of Local Government and District Affairs. Photo: Remi Sagen / news – This is an anniversary, one of the most important days for Northern Norway in a long time, says Mona Nilsen (Labor) in the finance committee. Name sister Mona Fagerås (SV) rejoices over the decision. – With this decision, we put Narvik and Nordland in the driver’s seat in the green shift. But the decision creates reactions. The decision on Framneslia «The Storting agrees that the Ministry of Local Government and District Affairs in 2022 can open to offer Narvik municipality to buy the state’s land at the now closed Narvik airport and adjacent free area at market price, corresponding to 151.1 million kroner. It will not be opened to sell at a lower price. A direct sale assumes that Narvik municipality undertakes that the business area will be used for value-creating activities, that it will be possible for more commercial players to be able to establish themselves and that such establishments will take place on market terms. ” Two industrial giants The case is about what could be one of the greatest industrial adventures in Norwegian history. Today, the state owns the plot. The mayor says that the municipality wants to buy the plot, and then rent it out in exchange for activity and jobs on site. The area, which measures 133,519 square meters, has attracted interest from industrial giants in both Norway and Sweden. Aker Horizons Holding, Aker’s green subsidiary, has said it will invest at least NOK 50 billion in the city. Here they will invest heavily in green steel, hydrogen, batteries and data centers. But also the large cornerstone company in Narvik – the Swedish state-owned mining company LKAB (Luossavaara-Kiirunavara Aktiebolag) – is very interested in buying the plot. The company mines iron ore in northern Sweden, and transports the ore with the Ofot line to Narvik. LKAB sees Narvik as an important part of their billion investment. MINING COMPANY: LKAB is a mining company based in Narvik, among other places. Today, they produce ore pellets, but want to move to a more environmentally friendly production. Photo: PHOTO: (CC) PETER KRANTZ / WIKIMEDIA COMMONS – We see Narvik as an important part of our plan, and we expect to invest NOK 400 billion in our company over the next 25 years, says director of communications and climate, Niklas Johansson to news. Turned to Swedish command But let’s first rewind two years back in time. Then the plot was almost ready to be sold to Narvik municipality. The price was set at about NOK 60 million. In the meantime, the municipality promised that Aker Horizon would have the site attached to its industrial investment. The case was only to be approved by the Ministry of Local Government. But then came an offer from the Swedish mining company of 180 million kroner. And thus the whole matter immediately became more complicated. Will bid more than market price Now the government has obtained a new market price: NOK 151.1 million. – There are various actors who have an interest in the case. Therefore, we are very concerned that the sale is made in an orderly manner, says Gjelsvik. But the decision to sell the plot to the municipality provokes reactions from LKAB in Sweden – When there are several stakeholders, the market price can only be determined on the open market, says Johansson. DIRECTOR: Niklas Johansson is head of communications and climate at the company LKAB. Photo: Mats Lundqvist / LKAB The company will now inform the ministry that they are willing to bid more than what the plot has been assessed for. – If we are to invest heavily in Narvik, we will own the land, he says. – Do you consider legal action if the plot is attached to Aker? – We must consider the decision, says Johansson. Will invite the companies to talks But even though the municipality has made a letter of intent with Aker, it is not a given that they will be chosen as a player on the site. – No. An agreement of intent has been made that Aker will be allowed to party, but it has not been made on how much or what will be there, says mayor Edvardsen. OLD AIRPORT: The plot that is now being disputed was Avinor’s airport until 2017. Photo: Harald Harnang Now he wants to invite both companies to talks to hear what plans they have for the plot. – Is there anything you can do together here, and how much does each player need? says the mayor. And the sum of 151 million kroner? The company that is chosen must pay. – The municipality must ensure that we will benefit from this, in addition to activity and jobs, says Edvardsen. – Means a lot for Narvik That a clarification of the case is now approaching, Narvik mayor Rune Edvardsen (Labor Party) is pleased. – We have been nervous that it could go out all year, while there are a lot of players on the field. – Have you been a bully in decision-making authorities? – Yes, without a doubt! I probably have been. MEETED AKER: Mayor Rune Edvardsen (left) showed the CEO of Aker ASA Øyvind Eriksen the possibilities on the airstrip to the closed airport in Framneslia last autumn. Eirik Frantzen, CEO of Nordkraft in the middle. Photo: Petter Strøm / news
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The government will sell huge plots to the municipality, that could be good news for Aker Horizon – news Nordland
