NIB Nordic Investment Bank

Loan

Finland. City of Porvoo

Date of loan: 29 Sep 2017
Country: Finland
Customer: City of Porvoo
Amount in EUR: EUR 50 million
Maturity: 20 years
NACE sector / loan type: Construction

Sectors

Infrastructure, transportation and telecom

Environmental effect

This loan contributes to climate change mitigation: 100%

Financing from NIB Environmental Bond proceeds

Share of financing: 73%

Amount disbursed: EUR 36,50 million

Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement

Read more about the NIB Environmental Bonds

Project

The loan has been provided to finance a municipal school and preschool investment programme in the city of Porvoo, southern Finland. The programme includes the construction of three buildings for school centres (Tolkkinen, Kevätkumpu/Vårberga and Västra enhetsskolan) and four buildings for preschool and day care centres (Gammelbacka, Toukovuori, Peippola and Mäntykumpu) as well as the renovation of six schools (Lyceiparken, Grännäs, Tolkis, Linnankoski, Keskuskoulu and Linnajoki).

The cost of the investment programme is estimated at around EUR 100 million, and the construction work is scheduled for completion in 2019. The investment will improve the operational efficiency of the school facilities and the quality and flexibility of the teaching infrastructure in order to meet the requirements of modern learning environment. The improvements will affect over 4,100 children.

Fulfilment of NIB's mandate

Competitiveness:

The investment will create a more technically advanced learning environment, which will allow the use of self-directed and cooperative learning methods to enact the new curriculum. The operational and energy efficiency of the buildings is expected to increase.

Environment:

The investment programme provides that old educational buildings not suitable for further use will be replaced with energy-efficient buildings utilising geothermal heating and photovoltaic cells. The use of energy in the new buildings will be approximately 50% of the current national average. The investment programme is thus anticipated to support targets for reducing energy use and greenhouse gas emissions that the city of Porvoo is committed to via voluntary schemes. Since 2014, Porvoo has been a member of the Carbon-Neutral Municipalities project coordinated by the Finnish Environment Institute, meaning that the city is committed to an 80% reduction in greenhouse gas emissions from the 2007 level by 2030. The city has also participated in the National Energy Efficiency Agreement scheme for 2008–2016 and is planning to sign an agreement for 2017–2025 with a target of a further 7.5% decrease in energy use in municipal buildings.

Sustainability summary

None of the construction or renovation projects in the investment programme are expected to have significant negative environmental or social impacts.

Back to agreed loans

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