All agreed loans

Sweden. Käppalaförbundet

Date of loan: 6 Mar 2019
Country: Sweden
Customer: Käppalaförbundet
Amount in SEK: SEK 540 million
Amount in EUR: EUR 50.89 million
Maturity: 30 years
NACE sector / loan type: Collection, purification and distribution of water
Business area: Energy and water

Project

The uncommitted loan facility has been provided to finance the expansion of the Käppala wastewater treatment plant and the general refurbishment of its external facilities in eastern Stockholm.

The municipalities north and east of the Swedish capital are experiencing significant population growth, and increasingly stringent regulations require higher treatment levels at all wastewater facilities in the area.

Käppalaförbundet currently treats wastewater from eleven municipalities.

Parts of the Käppala facility that were built in the 1960s are reaching the end of their service life, and will be refurbished. The investments in the expansion of the Käppala plant will increase its capacity from a population equivalent (PE) of 700,000 to 900,000.

This is the second loan agreed between Käppalaförbundet and NIB. The first was signed in 2015 to finance a new digester and a new high-rate-clarification process for overflow at the plant.

Käppalaförbundet is a federation of eleven municipalities located north and east of Stockholm, first established in 1957. Today, the company treats wastewater from over 500,000 inhabitants. The Käppala plant is located in Lidingö.

Fulfilment of NIB's mandate

Productivity:

The project will support Käppalaförbundet’s efforts to ensure sustainable water treatment in face of the anticipated population growth in the region. It is estimated that the investment will increase the treatment capacity of the facility and allow Käppalaförbundet to serve up to 900,000 inhabitants.

In the long term, the investment will also replace smaller wastewater treatment units in the area and potentially include additional municipalities. In addition, by replacing and upgrading outdated infrastructure, the economic performance and flexibility of the plant, as well as the increased quality of the treated wastewater, will have an impact on the productivity of public sector services. This will also contribute to efficient operations and communication.

Environment:

The capacity increase at the Käppala plant will allow for water treatment for an additional PE of 200,000. Further, the discharge of nitrogen, organic matter and phosphorous is expected to decrease in absolute terms. However, the project is predicted to result in a yearly increase of CO2 emissions of 4,000 tonnes.

The refurbishment of the external facilities are primarily required to maintain the current wastewater treatment capacity.

Expected annual environmental impacts related to the investment:

Nitrogen: -155 tonnes

Phosphorous: -1 tonne

Organic matter: -65 tonnes

CO2 emissions: +4,000 tonnes

Sustainability summary

This is a project with a potentially extensive environmental and/or social impact (category A, read more)

An environmental impact assessment has been carried out for the project. The key environmental concern is the discharge of wastewater to the Baltic Sea. The discharge of pollutants is predicted to decrease, even though larger volumes of wastewater will be treated. Most of the plant’s processes are located inside a mountain and do not have negative impacts on sensitive areas.

Press release

NIB finansierar bättre avloppsrening i Stockholm