The FINANCIAL — NIB and the City of Uppsala have signed a 25-year loan programme totalling SEK 600 million (EUR 63 million) to finance investments in municipal infrastructure for water, wastewater and waste management.
The loan programme will mainly finance three public infrastructure areas within Uppsala Vatten och Avfall Ab’s business: the upgrade of the drinking water production and distribution system, the improvement of the wastewater treatment system and the expansion of the local waste management facilities and biogas production plant, according to NIB.
The upgrade of the drinking water production and distribution system, which includes investments in Galgbackans drinking water plant, is expected to increase the fresh water output capacity by 27% and secure the water supply for up to 50,000 new household connections.
The second allocation under the loan is earmarked for the expansion of the Kungsängen wastewater treatment plant and its sewage network. The investment is to ensure that the quality of discharged water to the river Fyrisån remains at acceptable levels, without being affected by Uppsala’s fast expansion.
The capacity increase of waste management facilities includes investments in biogas production, as well as in waste handling and lifecycle parks, and waste sorting facilities. A new digester and pre-treatment unit are expected to add 46% in biogas production, to be used by local buses, taxis and waste collection vehicles.
Due to the positive environmental impact of the projects, SEK 430 million of the total loan amount will be financed with proceeds from NIB Environmental Bonds. The projects are thus eligible for a NIB Green Bond certificate.
“The investments in public infrastructure will assist Uppsala in accommodating the environmental demands of a growing population, and ensure sustainable urban development”, says Henrik Normann, NIB President & CEO.
Uppsala is Sweden’s fourth largest municipality and has about 215,000 inhabitants. Since 2007 the population has been growing by an average of 1.1% per annum. The municipality has a large services sector and hosts a biotechnology and life science cluster.
Uppsala Vatten och Avfall Ab is a municipally owned company that utilises environmental technologies and is responsible for public water and waste treatment services in Uppsala.