All agreed loans

Sweden. Municipality of Kungälv

Date of agreement: 4 May 2017
Country: Sweden
Customer: Municipality of Kungälv
Amount in SEK: SEK 200 million
Amount in EUR: EUR 20.82 million
Maturity: 20 years
NACE sector / loan type: Collection, purification and distribution of water
Business area: Infrastructure, transportation and telecom

This loan has a positive effect on the Baltic Sea environment: 34%

Project

The loan has been provided for water and sewage sector investments in the Municipality of Kungälv, Sweden.

Due to the growing population throughout the region, demand for improved water supply and wastewater treatment is increasing. NIB is helping to finance the construction of a new freshwater plant to replace an existing facility. The new plant will supply drinking water to the municipalities of Kungälv, Ale, Stenungsund and Tjörn.

The loan will also fund an expansion of the public water and sewage networks, connecting permanent residences and holiday homes to the public network and enabling transportation of wastewater to a large centralised treatment plant.

Kungälv Municipality is located 20 kilometres north of Gothenburg and has a population of approximately 43,000. This number is expected to increase to 55,000 by 2025.

Fulfilment of NIB's mandate

Competitiveness:

The new freshwater plant will replace the old purification system and connect to new residential areas, increasing the quality and security of water distribution.

Environment:

Construction of sewage collection systems forms a necessary component of sustainable urban infrastructure, and replacing private treatment systems with a large-scale treatment plant decreases discharges of nutrients. By connecting coastal areas to the municipal wastewater system, the network expansion will also reduce discharges of untreated or poorly treated wastewater into the sea.

Sustainability summary

The project is not expected to have any significant negative environmental impact.