The Nordic Investment Bank (NIB) has agreed to provide SEK100m (EUR10.4m) loan to centralise and improve wastewater treatment in Swedish municipality of Varberg.

The five-year maturity loan is funded with the proceeds of NIB Environmental Bonds.

The project to be financed is an 18-kilometre wastewater pipeline, which will be constructed by Varberg’s subsidiary Vivab. The pipeline will run along the coast and connect the village of Bua to Varberg’s central wastewater treatment plant. The wastewater treatment plant currently in use in Bua will be closed.

The project also includes the installation of seven pumping stations as well as smaller sewage system extensions.

The new pipeline will significantly increase the efficiency of wastewater treatment without adding to the operational costs of Varberg’s central wastewater treatment plant, which has sufficient capacity for the greater treatment volume.

Centralising the system will also lead to fewer cases of wastewater overflow, strengthening a vital public service and supporting regional growth.

NIB will finance half of the total project costs, which are estimated to be SEK 200 million. Construction is underway and scheduled to be completed in June 2017.