Estonia, EU – Baltic States, Legislation, Port, Tourism, Transport

"The bond issue's resources would be used by TS Laevad OU to make payments connected with the construction of ferries to shipbuilders," chairman of the management board of Port of Tallinn Marko Raid was quoted by spokespeople as saying. He added that in the next few years there are two possible ways to fund the construction of ferries –- issue on the international bond market or involving loan capital.

As at the beginning of December TS Laevad OU has paid to Polish and Turkish shipbuilders a total of 63.2 million euros. "Installments are connected to the different stages of ship building and by today the construction has reached a stage where we have paid more than half of the total purchasing price," Raid said.

The four new vessels must be ready by October 1 next year when the existing ten-year contract with the privately owned Saaremaa Laevakompanii to operate subsidized ferries to Estonia's largest western islands ends.

The ferries are being built in shipyards located in Gdansk, Poland and Altinova/Yalova, Turkey. The 114 meters long vessels will accommodate 150 passenger cars or 12 road trains and have passenger places equipped with safety devices for 700 passengers. The new ferries are designed by the Norwegian company LMG Marin. The ferries will cost about 30 million euros each and will be ready by fall next year.