All agreed loans

Finland. City of Lahti

Date of loan: 10 Mar 2014
Country: Finland
Customer: City of Lahti
Amount in EUR: EUR 30 million
Maturity: 15 years
NACE sector / loan type: Construction
Business area: Infrastructure, transportation and telecom

Environmental effect

Financing from NIB Environmental Bond proceeds

Share of financing: 100%
Amount disbursed: EUR 30 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 for the construction of the city’s new bus and freight terminal as well as construction of two multipurpose school campuses.

After the completion, the new bus and freight terminal will be part of a new travel centre. The relocation will enable commuters to easily transfer between bus and train and help reduce congestion in the city centre. The area currently being used for the bus and freight terminal will be converted into a residential and commercial area.

The main function of the two multipurpose school campuses will be to provide primary school services. The campuses will also include libraries, nursery schools, sports halls, a canteen, healthcare and dental services, as well as multipurpose spaces for the needs of the community. The activities and services will aim to attract residents of all ages. The campuses will replace two schools that were demolished in 2013 due to severe indoor air quality and mould problems. The new schools will have space for 375 new pupils. Both schools involve considerable energy efficiency gains.

Fulfilment of NIB's mandate

Competitiveness: The bus and cargo terminal will improve the transportation system by increasing the capacity and productivity of the bus services. Since the terminal will be in the same location as the railway station, connections between rail and bus services will become more efficient. The two new school buildings will provide facilities for roughly 9% of pupil population in grades 1–6 in Lahti. Since the return on investment in education at earlier stages of the learning process tends to have a high impact on academic and labour market outcomes, the potential impact of the project is considered good.

Environment: Due to the new travel centre, the public transportation network will be restructured and moving between buses and trains will become easier. The project will improve the public transportation network by increasing the amount of direct bus lines from both Lahti’s residential areas and three neighbouring municipalities to the travel centre. Both of the new schools will be more energy efficient than the old buildings.

Sustainability summary

Both of the new school campuses will be located within the same premises as the previous ones. The demolition work at the previous schools has been completed and currently teaching is taking place in temporary classrooms. No major environmental concerns have been identified and the projects comply with applicable environmental requirements.

Press release

NIB finansierar busscenter och skolor i Lahtis, Finland

 

Press release

NIB rahoittaa linja-autoterminaalin ja kouluja Lahdessa