The EFTA Surveillance Authority (ESA) has provided a comfort letter to Norway, that its proposed financial support for the upgrade of ski infrastructure in Narvik for the 2029 Alpine World Ski Championships is not incompatible aid, as a matter of a preliminary assessment.
The Norwegian city of Narvik is to host the Alpine World Ski Championships in 2029, organised under the auspices of the International Ski and Snowboard Federation (FIS). In late 2023, Norway announced that through its Ministry of Trade, Industry, and Fisheries, it would intend on giving Narvikfjellet Allmenn AS – a commercial undertaking – financial support (aid) for the alpine ski facilitites in the Narvikfjellet ski resort. Presently, the ski resort only has six ski lifts amongst its 15 slopes. For the facilities, Narvikfjellet Allmenn AS is co-owned by a foundation established by a non-profit foundation and the municipality. For the operation of the slopes and ski lifts, Narvikfjellet AS has similar shareholders.
Pursuant to Article 61 EEA , a measure constitutes state aid if the following conditions are cumulatively fulfilled: the measure (i) is granted by the state or through state resources; (ii) confers a selective economic advantage on the beneficiary; and (iii) is liable to affect trade between Contracting Parties and to distort competition.
The proposed aid, through two different streams, is to the tune of 456m Norwegian kroner (NOK) (€39m, approx.), and will be used for the creation of a new course plan, with three separate courses channelled into the same finishing area, the construction of three new ski lifts, one of which will replace the existing chair lift, as well as snow production, floodlights and technical infrastructure.
According to the ESA, the following is to be considered when looking at potential state aid and skiing infrastructure:
(a) the location of the installation, for example within cities or linking villages,
(b) the operating time,
(c) whether the installation has predominantly local users (in this regard its useful to look at the proportion of daily as opposed to weekly passes sold),
(d) the total number and capacity of installations relative to the number of resident users, and,
(e) other tourism-related facilities in the area.
The ESA consider that, for the Narvikfjellet ski resort,
‘[t]he limited size of Narvikfjellet, and its remote location in a very sparsely populated part of Scandinavia, both indicate that the ski resort has predominantly local users and is unlikely to attract customers from other EEA states.’
Therefore, the ESA considers that other than for the planned competition, the ski infrastructure is mainly a local interest, and that the proposed financial support by Norway ‘appears not to be liable to have more than a marginal effect on trade between EEA States within the meaning of Article 61 EEA‘.
The comfort letter sent to Norway as part of ESA’s preliminary assessment can be read here.