NIB said that the loan will be used by Käppalaförbundet to upgrade its wastewater treatment plant in Lidingö, eastern Stockholm.

The loan will support the expansion of the Käppala wastewater treatment plant and the general refurbishment of its facilities for increasing the plant’s capacity and the quality of the treated water.

The municipalities north and east of Stockholm are witnessing significant growth in population and increasingly stringent regulations require higher treatment levels at all the wastewater facilities in the region.

Käppalaförbundet presently treats wastewater from eleven municipalities. The loan from NIB will help in expanding the plant’s capacity from a population equivalent of 700,000 to 900,000.

NIB president and CEO Henrik Normann said: “The growing population of the greater Stockholm area is putting increasing demands on wastewater treatment facilities. The upgrade of the Käppala wastewater treatment plant will replace outdated infrastructure and help the local municipalities to ensure adequate water treatment.”

Founded in 1957, Käppalaförbundet is a federation of eleven municipalities located north and east of Stockholm. This is the second loan provided by NIB to Käppalaförbundet. The first loan was offered in 2015 to finance a new digester and a new high-rate-clarification process for overflow at the plant.

Last November, Nordic Investment Bank agreed to financially support the municipality of Tanum to provide SEK150m (€14.65m) to strengthen water supply and wastewater treatment. The loan will help co-finance projects in Tanum to install a wastewater pipe from Fjällbacka to more efficient wastewater treatment plant in Bodalen and to expand an existing drinking water plant.

Tanum is located on the west coast of Sweden, with a population of about 12,700. During summer, the population grows considerably in the municipality, due to which the municipality needs to increase drinking water supply.

The wastewater projects are expected to improve the collection and sewage system, and reduce infiltration of storm water into the sewage system.