NIB and NEFCO to manage new fund for a cleaner Baltic Sea

NIB and the Nordic Environment Finance Corporation (NEFCO) will jointly manage a new trust fund for technical assistance to finance the preparation of projects aimed at restoring the ecological status of the Baltic Sea.
 
NIB and NEFCO have been proactively involved in efforts for a cleaner Baltic Sea since the 1990s. Both organisations are long-standing partners of HELCOM, and are engaged in the Baltic Sea Action Plan (BSAP) implementation group. The BSAP was adopted by the HELCOM member countries in 2007 with the objective of restoring the good ecological status of the Baltic marine environment by 2021. The deadline for the countries to submit their national programmes on how to implement the Plan is next year.

“The new trust fund will speed up the implementation of the Baltic Sea Action Plan, through the provision of funds for institutional support and project preparation,” says Johnny Åkerholm CEO of the Nordic Investment Bank.

Together with the Bank’s Baltic Sea Environment Facility of EUR 500 million launched in 2008, the fund marks a new stage in NIB’s engagement in efforts to improve the maritime environment of the Baltic Sea.

“This fund is clearly needed for removing bottlenecks in the preparation of projects that curb eutrophication in the Baltic Sea,” says Magnus Rystedt, Managing Director of NEFCO.

Improving the state of the Baltic Sea is one of NEFCO’s main focus areas. The institution financed water and wastewater projects in the Baltic Sea region in 2008 that reduced phosphorus discharges by almost 1,000 tonnes.

Finland and Sweden were the first two countries to pledge their support for the new fund. Sweden has committed SEK 45 million (EUR 4 million) to the fund and Finland has promised an additional EUR 500,000. The fund is open for sovereign and private partners to join and its capital is expected to increase in the coming years. The start-up is anticipated for early autumn.

NIB and NEFCO will act as fund managers on the basis of their long-term engagement in the Baltic Sea region. The fund will provide grant financing for project identification, development, and preparation, as well as institutional support for projects concerning agriculture, wastewater treatment, and hazardous waste within the Baltic Sea’s catchment area.

The eligible recipients for funding are public or private entities in need of technical assistance and investment grants for institutional support and project development in implementing the BSAP. The support will extend the opportunities for projects to obtain investment financing from international financial institutions, including NIB and NEFCO.

NIB is organising a seminar today, at 14.15 Swedish time, on financing the rescue of the Baltic Sea at the Almedalen Week in Visby, Sweden.

NIB is a multilateral financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

NEFCO is an international financial institution owned by the five Nordic countries. NEFCO finances investments and projects in Russia, Ukraine, Estonia, Latvia, Lithuania and Belarus, in order to generate positive environmental effects of interest to the Nordic region. NEFCO currently administers funds to a total value of 339 million euros. 
 
For further information, please contact:

Mr Johan Ljungberg, Senior Director, Head of Environmental Unit, NIB,+358 10 618 0289,


 
Mr Jukka Ahonen, Communications Director, NIB, +358 10 618 0295,


 
Mr Mikael Sjövall, Communications Manager, NEFCO, +358 10 618 0649,