31 Jan 2019
EUR 147 million
Infrastructure, transportation and telecom
|Date of loan:||4 Dec 2018|
|Customer:||City of Kauhava|
|Amount in EUR:||EUR 10 million|
|NACE sector / loan type:||Construction|
|Business area:||Infrastructure, transportation and telecom|
Financing from NIB Environmental Bond proceeds
Share of financing: 100%
Amount disbursed: EUR 10 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 to finance a municipal school and pre-school investment programme that includes the construction of a new school centre as well as the extension and of two existing daycare facilities (Metsäkulmä and Voltti) in the municipality of Kauhava in the South Ostrobothnia region in western Finland.
The new school is the largest investment in the history of Kauhava, and it will centralise most of the municipality’s educational services into one building. It will offer education to 750 schoolchildren in a modern and flexible learning environment that meets the requirements of the new Finnish national core curriculum for basic education. Construction work for the new school started in April 2018 and is scheduled to be completed in autumn 2020.
The new, extended day care facilities can host around 60 children, and the expansion was completed in October 2018.
The total amount of both investments is EUR 22 million, of which the school accounts for approximately EUR 20 million.
Kauhava is a town of 17,000 residents. It was formed on 1 January 2009 by the merger of four municipalities—Alahärmä, Kauhava, Kortesjärvi and Ylihärmä—making it the third largest municipality in South Ostrobothnia.
The centralisation and modernisation of the teaching facilities is likely to improve the quality of education services, and to bring significant operational cost savings. The improvements in the quality of education services will have widely distributed impacts on the academic and labour market outcomes of the affected children.
The targeted energy performance level of the new school centre is 13% lower what is currently required for educational buildings in Finland. The total energy use is estimated to decrease annually by 2,200 MWh, and both electricity and heat consumption will be cut by half. Also, a solar power system generating 160 MWh of electricity annually is being installed to the new school centre.
The project has been assessed as not having significant negative environmental or social impacts.