NIB lends to Tallinn wastewater infrastructure developments

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The Nordic Investment Bank (NIB) and Estonia’s largest water utility Tallinna Vesi AS have signed a 15-year loan agreement to improve Tallinn’s wastewater management and stormwater collection infrastructure with an aim to enhance system maintenance, efficiency, and energy savings.

The EUR 40 million loan will co-finance Tallinna Vesi’s 2023-2025 investment programme to renovate approximately 45 kilometres of Tallinn's dated wastewater networks, an extension of the stormwater collection system, and an overhaul of the wastewater treatment plant. A smaller part of this programme is the installation of a small, combined heat and power unit, which will harness self-produced biogas to supply both heat and power to the plant.

The investment programme will make improvement in service delivery by reducing faults and downtime. Through digitalisation, operational efficiency will be enhanced, facilitating better long-term investment planning. Additionally, cost efficiency gains may result in lower operating costs and moderated tariff hikes, directly benefiting consumers. The project ensures top-tier treatment of city-produced wastewater, a reliable network, and separation of wastewater and stormwater. Energy-saving measures will reduce natural gas usage by approximately 3 GWh, while generating 12 GWh of onsite heat and electricity.

This loan agreement follows previous successful collaborations between NIB and Tallinna Vesi in 2019, 2014, and 2009.

"We are pleased to continue our partnership with Tallinna Vesi in this transformative initiative," says André Küüsvek, NIB President and CEO.

"This project embodies our commitment to fostering sustainable and responsible investments. At NIB, we understand the importance of infrastructural upgrades and the integration of innovative practices like real-time system control and the use of renewable energy sources. Our past collaborations with Tallinna Vesi have already demonstrated successful outcomes, and we are confident this new investment programme will further enhance service provision, bolster operational efficiency, and importantly, contribute positively to our environment."

“The agreement with NIB is a vital part of our company’s financing structure. It will enable us to continue our investment programme and deliver on our environmental commitments, supply our customers with reliable and high-quality water services and create value for shareholders,” says Taavi Gröön, CFO, Tallinna Vesi AS.

AS Tallinna Vesi, the water utility of Tallinn, is Estonia’s largest water company. The company operates the city’s water and wastewater treatment plants, including the Ülemiste and Paljassaare facilities, and manages a supply network spanning over 2,300 km. It provides essential drinking water and wastewater disposal services to roughly 470,000 people in Tallinn and surrounding areas, representing a third of Estonia’s population. Tallinna Vesi is listed on Nasdaq Baltic market. Tallinna Vesi’s shareholders, with a direct holding over 5% are the City of Tallinn and OÜ Utilitas.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Kersti Talving, Senior Banker, Public Sector & Utilities, at +358 10 618 0245,

Arild Moen, Associated Director, Communications, at +358 10 618 0496,