City of Tartu

The City of Tartu is being granted an uncommitted investment facility of up to EUR 25 million to finance its urban development programme, including the refurbishment of educational facilities between 2025 and 2029.

The programme focuses on key infrastructure and social services, such as upgrades to childcare and education facilities, improvements to the city’s road network, and the renovation of the central Sõpruse bridge. The total estimated cost of the investments is approximately EUR 51 million.

This is the third facility extended to the city by NIB. Tartu is Estonia’s second-largest city, with around 98,000 residents. During the academic year, the presence of approximately 18,500–19,200 university students increases the effective population to an estimated 115,000–117,000.

The investment programme is divided into two sub-projects. Sub-project 1 includes the reconstruction of the Sõpruse bridge, construction of a pedestrian tunnel, and improvements to pedestrian and bicycle infrastructure. Sub-project 2 covers the refurbishment of kindergarten buildings, gymnasiums, and playgrounds.

Productivity

Sub-project 1

The Sõpruse bridge plays an important role in urban mobility, connecting key pedestrian and bicycle networks. Its reconstruction aims to better distribute traffic loads, enhance walking and cycling conditions, and create a safer, more accessible environment, while contributing to reduced environmental impacts.

The city also plans several street and intersection upgrades to further improve pedestrian and bicycle infrastructure while maintaining efficient car traffic.

Sub-project 2

The investments include the renovation of several educational buildings, focusing on improving service quality, energy efficiency, and indoor climate to support better health and learning outcomes. The largest projects will benefit approximately 1,200 students and children.

Environmental

Sub-project 1

The Sõpruse bridge will be reconstructed to widen the pedestrian pathway and add new bicycle lanes, improving overall safety. Motor traffic lanes will be narrowed to create space for these upgrades. Strengthening pedestrian and cycling infrastructure supports the city’s shift toward greener transport. The investment is expected to increase walking and cycling, reduce car traffic, and potentially lower overall GHG emissions.

Sub-project 2

All buildings under the investment programme will be refurbished to achieve an upgrade of at least two levels in their Energy Performance Certificate (EPC) rating.

Impact indicators related to the loan:

Productivity:

• Capex (total) EUR million 51

Environment:

• Energy class level upgrades for kindergartens

As majority of the project involves refurbishment of existing infrastructure and buildings, no negative environmental impact of concern is generated from the project. The project has secured necessary permits needed.