3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||12 Oct 2016|
|Amount in EUR:||EUR 150 million|
|NACE sector / loan type:||Construction|
|Business area:||Infrastructure, transportation and telecom|
This loan contributes to climate change mitigation: 100%
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 100%
NEB category: Clean transport solutions and Clean transport solutions
Amount disbursed: EUR 25 million and 40 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
The loan has been provided for the construction of a seven-kilometre extension (Phase 2) to a metro line in Espoo, a satellite city of Helsinki, the capital of Finland.
The city of Espoo is implementing a EUR 801 million investment programme aimed at building Phase 2 of a metro line that will link the city with Helsinki. Phase 1 will run for 14 kilometres from Helsinki to Matinkylä in Espoo and have eight stations. The extension, from Matinkylä to Kivenlahti, will add seven kilometres and five new stations.
It is estimated that 170,000 people will use the new metro line on a daily basis. The project is an integral part of the development of new residential areas to accommodate over 40,000 residents and potential users of the metro line.
Phases 1 and 2 are both being implemented by Länsimetro Oy, a company jointly owned by the cities of Espoo and Helsinki and founded in 2007.
The project will increase public transport capacity and marginally reduce travel times. In total, the annual value of time savings in traffic is estimated to approach EUR 1 million by 2025 and to exceed EUR 3 million by 2050.
Transporting passengers by rail is significantly more environmentally friendly and efficient than road transport. Further, building an underground metro line will reduce the impact on the surrounding environment. The design of the aboveground metro infrastructure is optimised to mitigate the impact on protected areas and species.
The significant positive impact of the project includes a reduction of emissions into the air due to the transfer of passengers from road to rail. Negative environmental impacts are mainly assessed to occur during the construction work. The excavation of tunnels by drilling and blasting is estimated to last for 2.5 to 3 years. This will cause vibration and noise impacts on the surroundings and increase the amount of heavy traffic in the region. The impacts will be minimised by restricting the noisiest work phases to the daytime, as required by noise permits. The reduction of groundwater level and soil subsidence will be minimised through sufficient bedrock compaction and grouting. The impacts on surface water and the habitats of protected species in the nearby streams will be avoided by pre-treating the drainage, drilling and storm water from the construction sites and discharging them into the sewerage system.