All agreed loans

Sweden. City of Stockholm

Date of agreement: 4 Oct 2018
Country: Sweden
Customer: City of Stockholm
Amount in SEK: SEK 500 million
Amount in EUR: EUR 48 million
Maturity: 10 years
NACE sector / loan type: Construction
Business area: Energy and water

Financing from NIB Environmental Bond proceeds

NEB-eligible share: 68% and 32%
NEB category: Blue Bond project* and Clean transport solutions
Amount disbursed: EUR 33 million and 15 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 to co-finance the construction of new water locks and public transport infrastructure, including a new bridge for cyclists and pedestrians, at the Slussen public transport hub in Stockholm.

Slussen is an area in central Stockholm, built on a water lock allowing passage between Lake Mälaren and the Baltic Sea. Lake Mälaren provides drinking water to a population of approximately two million people. As of 2050, rising sea levels are expected to surpass Sweden’s land uplift. The renovation of the Slussen water locks will increase the drainage capacity and accommodate higher floodgates. This includes the construction of two larger water channels beside the lock to prevent flooding and the contamination of drinking water, as well as damage to critical infrastructure, such as electric utilities, district heating, and sewage treatment plants.

Further, the Slussen metro station is the city’s second-largest public transport hub and a crucial meeting point for rail, water, and road traffic coming into the city. The construction of a new bridge for cyclists and pedestrians alongside the existing metro bridge will improve the connection between the district of Södermalm and Stockholm Central Station.

In addition to the bridge, the loan will finance the Atrium hub, which will include an entrance to the metro, bus and train station, and enable connections between different public transport modes.

The Nya Slussen project is currently one of the largest ongoing construction project in Sweden. The total project cost is SEK 12.1 billion.

Construction began in 2016. The flood locks are expected to be commissioned in 2022, and the entire Slussen project will be completed in 2025.

Stockholm is the most populous city in the Nordic–Baltic region, with 1.5 million residents in 2018. The city is one of the fastest-growing regions in Europe and benefits from a strong economy and a rapidly growing population.

Fulfilment of NIB's mandate

Productivity
The investments in the water lock at Slussen will provide flood protection and secure the supply of drinking water for over two million people in 40 municipalities, and ensure that strategic infrastructure assets are resilient to climate change in the future. Given the outdated and currently insufficient water discharge capacity at Slussen, severe flooding would endanger fresh water supply, sewage treatment, electricity, telecommunications and district heating networks, and disrupt several public transport services.

Further, the expansion of the urban transport infrastructure at Slussen is expected to provide safer and improved connections and traffic flows for commuters, cyclists and pedestrians. Approximately 400,000 people pass through the station every day. This figure is expected to rise by more than 25% to 505,000 people by 2030.

Environment
The investments at the Slussen water lock will increase the discharge capacity from 300 m3/s to 1,400 m3/s, which is expected to play a vital role in protecting the surroundings of Lake Mälaren in case of extreme weather conditions. The construction will be combined with a new water regulation plan that will allow for larger fluctuations of the lake’s mean water level throughout the year.

The construction of a new, 200-metre long bicycle and pedestrian bridge, as well as a new entrance to the metro station and an improved quay for the Skeppsbron ferries, is estimated to reduce car traffic and increase the flow of people on bikes from about 25,000 movements per day to 53,000 by 2030.

Sustainability summary

The flooding mitigation measures at the Slussen lock will reduce the risk
of saltwater intrusion from the Baltic Sea to Lake Mälaren, and prevent the
discharge of untreated wastewater into the lake. Negative consequences of the
new regulation include the loss of spring cultivation. Further, it is estimated
that 4,400 hectares of farmland could be affected, along with another 1,600 hectares of grazing land. The loss of agricultural possibilities will be compensated.

During the construction phase, temporary negative effects such as noise, dust,
vibrations, waste handling and groundwater pumping are expected. The
construction companies are responsible for handling the impacts within their
environmental management plans.

Press release

NIB finansierar projektet Nya Slussen i Stockholm