NIB finances modernisation of Tallinn’s wastewater system
- A EUR 25 million loan will support major upgrades to Tallinn’s wastewater infrastructure, focusing on replacing and refurbishing assets to improve service reliability and operational efficiency.
- Around 18 kilometres of outdated wastewater networks in Tallinn will be renovated.
- The upgrades are expected to reduce downtime, lower operating costs, and help moderate future tariff increases.
NIB has signed a EUR 25 million loan with AS Tallinna Vesi, extending the existing 2023–2025 project financing through 2026 to support major upgrades to Tallinn’s wastewater infrastructure. The programme focuses on the replacement and refurbishment of assets to enhance service reliability and operational efficiency.
Around 18 kilometres of outdated wastewater networks in Tallinn will be renovated to reduce the number of faults in the system and protect the environment. The investment programme also includes upgrades to the wastewater treatment plant, with a strong focus on energy efficiency – particularly improvements to the areation system and refurbishment of the biological treatment process.
“The signed agreement enables us to implement our investment plan, ensuring high-quality and sustainable water services while preserving the natural environment. These investments support our environmental stewardship journey, as evidenced by Tallinna Vesi recently being awarded the title of Estonia’s Sustainable Company of the Year,” said Taavi Gröön, Chief Financial Officer of Tallinna Vesi.
“Efficient water infrastructure is a key pillar of sustainable urban development. By supporting this long-term investment programme, reliable wastewater services can be secured for a large share of Estonia’s population, while promoting energy efficiency and digitalisation. These upgrades will strengthen operational performance and contribute to more cost-efficient service delivery for residents,” says André Küüsvek,President and CEO of NIB.
The project features a digitalisation component that will enable real-time monitoring and control of the network, improving operational efficiency and supporting better long-term investment planning. In addition, the expanded stormwater system will help minimise the mixing of wastewater and diluted stormwater, contributing to higher treatment standards and fewer untreated bypasses.
Overall, the upgrades are expected to lower downtime, reduce operating costs, and help moderate future tariff increases while delivering extensive modernisation across the city’s wastewater services.
AS Tallinna Vesi is Estonia’s largest water utility, operating Tallinn’s water and wastewater treatment plants and managing a network spanning more than 3,000 kilometres. The company provides essential services to around 500,000 people in Tallinn and its surrounding areas—about one-third of Estonia’s population. Its primary shareholder is the City of Tallinn, with OÜ Utilitas as a minority stakeholder; the remaining shares are listed on the Nasdaq Tallinn stock exchange.
NIB has previously financed Tallinna Vesi in 2023, 2019, 2014, and 2009.
NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.
For further information, please contact
Kersti Talving, Senior Banker, Public Sector & Utilities, +358 10 618 0245, kersti.talving@nib.int
Elīna Neimane, Senior Communications Officer, +358 10 618 0871, elina.neimane@nib.int
