The Nordic Investment Bank (NIB) has agreed to provide €70m ($75.8m) funding to Fortum to refurbish the two hydropower facilities in Sweden and one facility in Finland.

The bank has signed a ten-year loan agreement with Finnish state-owned energy company, Fortum to upgrade hydropower projects.

The funding will be utilised to upgrade the existing hydropower facilities in Imatra, Finland, and Långströmmen in Jämtland, Sweden, which were finalised in 2019.

The energy company has commenced the refurbishment of the hydropower plant Trängslet located in Dalarna last year and expects to complete in 2025.

Fortum plans to refurbish an additional hydropower plant in Sweden this year.

The firm is also planning to begin refurbishing an additional hydropower plant in Sweden this year.

The work on the hydropower projects include the repair and reinforcement of dam structures and gates, expansion of spillway capacity, addition of new bride decks and the renewal of electrical systems.

The facilities were constructed between 1920 and 1960 and the upgrade project will extend the lifetime of the dam structures with about 50 years, allowing them to continue producing renewable electricity.

The funding from the bank will also be used to upgrade the reservoirs of the power stations, which will improve the operational security of the units.

NIB said: “The investment does not bring any new capacity to the network. However, the investment contributes to the security of supply and maintains efficient operation of the electricity market in NIB’s member countries.”

Fortum provides electricity, heating and cooling as well as smart solutions to customers to improve the efficiency of the resource.

It employs nearly 8,000 professionals in the Nordic and Baltic countries, Russia, Poland and India.

Earlier this year, NIB has signed a 10-year loan agreement to provide NOK600m ($65.6m) funding to Agder Energi to increase hydropower efficiency in Norway.