Norway. City of Oslo

The loan has been provided for the City of Oslo to finance the acquisition of 20 metro trains. NIB’s loan will cover Oslo’s full share of the procurement expenditure, accounting for about 10.7% of total costs for the Fornebu Metro Line expansion project.

The Oslo City Council approved in February 2022, the procurement of up to 20 new subway trains. Subsequently. The municipally owned public transport operator Sporveien has signed a contract with the Spanish supplier CAF, and the metro trains are scheduled for delivery from 2027 until 2029.

The new line will connect Majorstuen in Oslo to Fornebu to significantly improve public transport access to the Fornebu area. This will make commuting easier and faster, with an estimated commute of about 12 minutes between Majorstuen and Fornebu. The high-capacity metro line is designed to carry up to 8,000 passengers per hour, which will alleviate pressure on the existing road network. The time-savings will lead to reduced matching frictions in labour market.

The project will also facilitate urban development in the Fornebu area, encouraging the construction of new homes and businesses. According to Oslo municipality there are plans to build 11,000 new homes at Fornebu in addition to new business development.

The new metro trains are estimated to be approximately 10% more energy efficient than the existing trains. The new trains are not replacing existing trains but will serve as an addition to the current fleet.

Oslo aims to reduce its greenhouse gas emissions by 95% by 2030, integrating climate mitigation and adaptation into all decision-making. Transport accounts for about half of these emissions.