Landsnet Power Transmission (EIB-20210525)

  • Iceland
Geographic location where the impacts of the investment may be experienced.
Specific Location
Krafla, Fljótsdalur, Rangárvellir, Akureyri, Hólasandur
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • European Investment Bank (EIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jan 24, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 65.34 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 60
Converted using 2023-01-24 exchange rate.
Project Cost (USD)
$ 139.39 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 128 million
Converted using 2023-01-24 exchange rate.
Primary Source

Original disclosure @ EIB website

Updated in EWS Feb 8, 2023

Disclosed by Bank Nov 24, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

From the EIB's website:

The operation is a multicomponent investment project consisting of two projects to extend the 220 kV power transmission grid in the north-eastern part of Iceland. The first project, Kröflulína 3, comprises the construction of a 121 km long 220 kV overhead transmission line between Krafla and Fljótsdalur, the modifications to the 220 kV substation at Krafla and extension of the 220 kV substation and an underground cable link at Fljótsdalur substation. The second project, Hólasandslína 3, comprises a 62 km long 220 kV overhead line, a 10 km long 220 kV underground cable, construction of a new 220 kV substation at Rangárvellir, Akureyri and the construction of a new 220 kV substation at Hólasandur.



Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The Kröflulína 3 line crosses c:a 150 m of the national park Vatnajökulsþjóðgarður. This is the narrowest part of the park and no masts will be in the protected area. The main impact is visual and the park’s protection plan already assumes the power line. The Kröflulína 3 line will cross about 480 m of the Nature conservation area of Mývatn and Laxá, again without masts erected in the area. The main impact will be visual impacts and possible impacts on birds (collisions).
The Environmental Agency of Iceland has issued a permit for the project in the area.

The project will cause disturbance to about 20 ha of wetlands, where 12 ha are protected based on on Article 61 in the Nature Conservation Law. The promoter will compensate by restoring the same area of wetland in another location as a mitigation action. The project will also cause disturbance to about 18 ha of young lava which is protected based on the same law. A small population of reindeer lives near the line, which will cross the reindeers' passage but the line is considered not to have any impacts on them.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Landsnet HF Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.


Landsnet hf.
Ssn 580804 2410
Address: Gylfaflöt 9, 112 Reykjavík
Phone: 563 9300
Fax: 563 9309


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