26 Apr 2012

NIB finances high-capacity transmission line in southern Estonia

Elering
Photo: Elering AS

NIB and Estonia's state-owned transmission system operator Elering AS have signed a 20-year loan for the construction of a 330 kV transmission line in southern Estonia.

The loan totals EUR 15 million. The new 160-kilometre transmission line will be built between Tartu, Viljandi and Sindi, linking southeast to southwest of Estonia. The capacity of the new line will ensure higher security of supply in the Pärnu region (southwest Estonia) and allow connecting potential new wind parks in the western Estonia.

"By financing larger capacity of Estonia's transmission lines, NIB contributes to the country's competitiveness and readiness for innovative approaches in energy production from renewable sources," says Henrik Normann, NIB President and CEO.

The new line is one of the technical preconditions for a new cross-border connection planned between Estonia and Latvia which will reinforce the Baltic electricity market. The construction began in early 2011 and is to be completed in 2014.

The Nordic Investment Bank (NIB) is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing to the energy, environmental, transport, logistics and communications, and innovation sectors for projects that strengthen competitiveness and enhance the environment. NIB has the highest possible credit rating, AAA/aaa, with the leading rating agencies Standard & Poor's and Moody's.

For further information, please contact

NIB

Vilius Girkontas, Senior Manager Origination, at +358 10 618 0240,

Dimitrijs Alehins, Senior Communications Specialist, at +358 10 618 0296,

Elering AS

Liis Raadla, Head of Communications, at +372 71 51 368,