The municipality is setting up a municipally owned urban development company. It will be this company’s job to fund, design, prepare, develop, construct and run the urban development of Nuuk and Siorarsiorfik as agreed by the municipal council. Sermersooq Municipality already owns companies such as Nuup Bussii A/S and Iserit A/S.

Nuuk’s urban development includes up to 1600 new homes (400 of these will be council housing), up to three new schools, up to three new after-school care facilities (AKOs), up to ten integrated daycare centres, a road link between Qinngorput and Siorarsiorfik, development of other infrastructure, commercial areas, commercial premises and an option for a covered stadium.

The urban development project was originally intended to be one single project, the aim being to attract a consortia of institutional investors and contractors to perform the work. Instead, the project has now been divided up into both major and minor tenders.

“There’s a risk that one single package of connected tenders will complicate the urban development and make it more expensive. This new model will allow us to reap the benefits of inviting both major and minor local contractors to bid, preferably in consortia with other operators,” says Lars Møller-Sørensen, Chief Executive at Sermersooq Municipality.

“With a municipal urban development company, the process will be more dynamic and less rigid. If, for instance, student numbers at Nuuk’s schools don’t grow at the pace we currently expect, we can scale up or down accordingly. If we have one, single Invitation to Tender, we risk tying ourselves to a large sum of money for a very long time. Politicians set out the long-term goals and development plans, but the urban development company is close to the actual work and carries out specific, practical tasks as they arise,” says Lars Møller-Sørensen.

Sermersooq Municipality is injecting share capital worth DKK 5 million into the new company as well as subordinate loan capital amounting to DKK 20 million.

Ownership of four of the municipality’s housing departments – estimated at DKK 1.3 billion – will also be transferred to the company.

The municipality’s urban development company will be called “Siorarsiorfik – Nuuk City Development”.