All agreed loans

Sweden. City of Malmö

Date of agreement: 17 Apr 2020
Country: Sweden
Customer: City of Malmö
Amount in SEK: SEK 825 million
Amount in EUR: EUR 74.84 million
Maturity: 30 years
NACE sector / loan type: Collection, purification and distribution of water
Business area: Energy and water

This loan has a positive effect on maritime environments: 73%

Project

NIB has granted the uncommitted loan facility to finance up to 50% of the City of Malmö’s investment 2020 - 2024 investments into water and wastewater infrastructure, amounting in total to SEK 1,650 million.

The investments consists of two sub-projects, where improvements to the wastewater infrastructure represents 73% of the total investment budget, and the remaining 27% relating to improving the water infrastructure.

The City of Malmö would onlend the loan funds to VA SYD, which is a municipal federation of five member municipalities, Malmö, Burlöv, Eslöv, Lomma and Lund. VA SYD delivers water- and wastewater services as well as waste treatment services to its member municipalities.

Fulfilment of NIB's mandate

Investments in the drinking water infrastructure

Productivity
The purpose of the investments during 2020-2024 is to strengthen the capacity of freshwater supply in Malmö and surrounding areas by replacing old and leaking pipes, expanding water supply and increasing production capacity.

Water treatment capacity at Bulltofta water work will increase by 25% and production capacity by 54% from 130 litres per second to 200 l/s. Although Bulltofta is used during peak load, the region of Skåne is nonetheless considered more vulnerable than other regions, and has to continuously adapt and invest to enhance water security given the impact of climate change and population increase by around five percent until 2024.

Expected Productivity impact from the project:

  • Production capacity at Bulltofta to increase from 130l/s to 200 l/s
  • Reduced number of water leaks

Expected environmental impact from the project:

  • Reduced number of water leaks per 10 kilometres of pipe, down from 1/10 km for Malmö in 2018

Investments in wastewater infrastructure

Productivity

The investments in wastewater collection and treatment consist of several projects to replace outdated infrastructure, adjust investments in existing plants and expands the network to new areas. The investments will have a positive impact on the security and stability of operations due to the population growth (approximately 5% until 2024) and the increasing frequency of severe weather events, resulting in stress on the outdated infrastructure and water treatment facilities.

Improved protection from flooding by improving rainwater run-off systems from older residential areas, as well as expansion of services from 340,000 population equivalents (PE) to 370,000 PE at Sjölunda wastewater treatment plant.

Environment

The investments are divided into three main areas, adjustment investments at existing plants, expansion investments for new areas and capacity increase in existing areas, and thirdly reinvestments in existing infrastructure to maintain the integrity and function of the infrastructure. The expansion investments into the wastewater system will allow for the connection of additional 30,000 PE.

The investment into the wastewater system of the City of Malmö is eligible for funding with NIB Environmental Bond proceeds with a Nordic-Baltic Blue Bond.

Expected productivity impact from the project:

  • Improved protection from flooding by improving rain water run-off systems from older residential areas
  • Expansion of services from 340,000 PE to 370,000 PE at Sjölunda wastewater treatment plant.

Expected environmental impact from the project:

  • Increased connections in PE

Sustainability summary

No significant environmental aspects identified.