Estonia. Tallinn City Government

Date of agreement:05 May 2022
Customer:Tallinn City Government
Amount in EUR:EUR 100 million
Maturity:20 years


This uncommitted credit facility was made available to finance Tallinn’s urban development programme during 2021–2025. Investments under the programme include renovations of schools, day care centres and other social facilities, as well as improvements to light road infrastructure.

The Estonian capital Tallinn has a population of ca. 427,000. The Tallinn City Government has a climate action plan in place that specifies strategic goals to achieve climate neutrality by 2050 and a plan to fulfil the commitment set out in the Covenant of Mayors to reduce the greenhouse gas emissions of cities by 40% until 2030.

Fulfilment of NIB's mandate

Renovation of education facilities:

Renovating existing schools and day care centres intends to achieve energy savings and to improve the physical learning environment of the facilities to meet the requirements of Estonia’s education programme. Further, the day care centres to be renovated under the programme will also undergo changes in spatial planning, resulting in minor increases in capacity. Investments in the quality of the physical infrastructures of education and social facilities is seen as an investment in the wellbeing of both students and teachers and intends to improve learning outcomes.

Light traffic infrastructure:

The urban development programme includes improvements to approximately 28 kilometres of light traffic roads and the replacement of street lighting. The investments in light traffic infrastructure mainly concern the expansion of pedestrian and bicycle connections, which is expected to support Tallinn’s transition to clean transportation. The replacement of street lighting with LED lamps gives significant improvements in energy efficiency (>30%) and is expected save some 600 MWh annually.

Impact indicators in relation to the investments


  • Renovation of education facilities: Number of pupils
  • Light traffic infrastructure: length of road built, km
  • Street lighting: annual energy savings (MWh/a)


  • Light traffic infrastructure: length of road built, km
  • Street lighting: annual energy savings (MWh/a)

Sustainability summary

No significant negative environmental or social impacts have been identified in relation to the projects under the urban development programme for 2021–2025.

Press release

NIB provides financing for urban development in Tallinn

Press release

Põhjamaade Investeerimispank rahastab Tallinna linnaarendust