Brussels, 20/06/2002 (Agence Europe) - On Wednesday, the Commission decided to authorise Basque government aid for the construction of a combined cycle power station (BBE) and regasification plant (BBG) in Bilbao. There would be EUR 30 million in aid for BBE and EUR 23.2 million for BGE. The two beneficiary companies are held by BP-AMOCO, REPSOL, IBERDROLA and EVE (25% of the capital of each).
The Commission has come to the end of its formal investigation procedure opened on 6 June 2001. It had noted that the project did not come into any aid system in force and that it was therefore of a specific kind. In order to comply with the legislation on regional aid, the aid must provide advantages to the region that are greater than the competition distortion that it entails. In this case, the Commission considers that the regasification plant would contribute to improving the gas distribution system in the region given that the Basque County is remote from the various entry points for gas in the Iberian Peninsula. Furthermore, the project will be beneficial for the region's GDP.