Sweden. Municipality of Kungälv
| Date of agreement: | 21 Nov 2016 |
|---|---|
| Country: | Sweden |
| Customer: | Municipality of Kungälv |
| Amount in SEK: | SEK 300 million |
| Amount in EUR: | EUR 30.6 million |
| Maturity: | 20 years |
| NACE sector / loan type: | Collection, purification and distribution of water |
This loan has a positive effect on maritime environments: 34%
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 34%
NEB category: Water management and protection
Amount disbursed: EUR 17.5 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 water and sewage sector investments by Kungälv Municipality in Sweden.
Due to the growing population throughout the region of Gothenburg, demand for improved water supply and wastewater treatment is increasing. NIB is helping to finance the construction of a new waterworks to replace an existing facility. In addition to Kungälv, the new plant will supply freshwater to the municipalities of Ale, Stenungsund and Tjörn.
The loan will also fund an expansion of the public water and sewage networks, connecting both permanent residences and holiday homes to the public network and enabling transportation of wastewater to a large centralised treatment plant.
The total cost of the water plant is SEK 340 million, while SEK 718 million has been budgeted for the network expansion, divided into SEK 359 million for freshwater pipes and SEK 359 million for sewage pipes. The total cost of both projects amounts to SEK 1,058 million.
Kungälv Municipality is situated 20 kilometres north of Gothenburg and has a population of approximately 43,000. This number is expected to increase to 55,000 by 2025.
Fulfilment of NIB's mandate
Competitiveness:
The new freshwater plant will replace the old purification system and allow for new connections to a growing population, increasing the quality and security of water distribution.
Environment:
Construction of sewage collection systems for new residential areas forms a necessary component of a sustainable society, and replacing small-scale private treatment systems with a centralised treatment plant increases efficiency and decreases discharges of nutrients. By connecting coastal areas to the municipal wastewater system, the network expansion will also reduce discharges of untreated or poorly treated wastewater into the sea.
Sustainability summary
The project is not expected to have any significant impact on the environment.
