Estonia. AS Tallinna Vesi
| Date of agreement: | 20 Nov 2019 |
|---|---|
| Country: | Estonia |
| Customer: | AS Tallinna Vesi |
| Amount in EUR: | EUR 37.5 million |
| Maturity: | 15 years |
| NACE sector / loan type: | Collection, purification and distribution of water |
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 47%
NEB category: Blue Bond project
Amount disbursed: EUR 17.6 million
This project has been financed with the proceeds of NEBs issued under the previous framework
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 for Tallinna Vesi’s investment programme to improve Tallinn’s freshwater supply and wastewater management infrastructure.
The investments in fresh water distribution infrastructure will secure a stable quality water supply for the city and decrease operational costs.
Upgrading the wastewater management network will ensure efficient services that meet the challenges of climate change and population growth. The treatment capacity increase at the Paljassaare wastewater treatment plant will minimize flooding and overflow of sewers during heavy rainfall or snowmelt periods, thus decreasing discharges into the Baltic Sea.
The programme is scheduled to be implemented during the period 2020–2024.
AS Tallinna Vesi is the water utility of Tallinn. The company operates the city’s water and wastewater treatment plants as well as its supply and sewerage networks. It provides drinking water and wastewater disposal services to approximately 460,000 people in the Estonian capital, as well as to neighbouring municipalities.
Fulfilment of NIB's mandate
Productivity:
Freshwater supply is a key infrastructure service, which can create substantial economic costs in case of interruptions. The investments in catchment, treatment and piping will help to maintain the supply of good quality drinking water and prevent leakages.
The freshwater infrastructure renewal should decrease the operational costs and benefit the company in energy savings. Moreover, the daily water production capacity is expected to increase.
Projects related to the wastewater management networks will help to safeguard key infrastructure services in the region.
Expected impacts related to the investments:
- Increased water production capacity
- More consumers connected to the networks
- Lower leakage levels
- Decreased number of sewer blockages
Environment:
Climate change is considered to be one of the main challenges to urban wastewater systems in upcoming years.
Extreme weather conditions and earlier snowmelt runoff increase flooding and lead to more untreated sewer overflows. Paljassaare wastewater treatment plant does not have a retention tank to collect storm water and peak loads of untreated wastewater are currently occasionally discharged into the Baltic Sea.
The hydraulic and mechanical treatment capacity increase will enable to decrease the amount of untreated wastewater and the nutrient load into the sea.
Furthermore, the loan programme includes an upgrade to a combined heat and power plant. This will allow to start generating electricity from biogas to save energy and reduce CO2 emissions
Expected impacts related to the investments:
- Decreased amount of untreated wastewater discharge
- Reduced annual effluent discharge
- Increased electricity and heat generation from biogas
- Reduced CO2 emissions
Sustainability summary
Building an alternative water catchment area might cause some temporary negative impacts. Other investments related to freshwater supply will not have any significant negative impacts on the environment.
The wastewater treatment plant is operating in compliance with the environmental permit and complies with HELCOM requirements.
