NIB signs loan for improvements to public water network in Kungälv, Sweden

NIB signs loan for improvements to public water network in Kungälv, Sweden

NIB signs loan for improvements to public water network in Kungälv, Sweden

The FINANCIAL -- NIB and the Swedish municipality of Kungälv have signed a 20-year maturity loan for the construction of a new waterworks and the expansion of the public water and sewage networks.

The long-term loan agreement of SEK 300 million (EUR 31 million) will finance two projects within the water and sewage sector, according to NIB.

The first project is the construction of a new waterworks to replace an existing facility. In addition to the municipality of Kungälv, the waterworks will supply freshwater to the municipalities of Ale, Stenungsund and Tjörn.

New freshwater treatment technology will replace the old purification system and increase the quality and security of the water distribution to the region’s growing population.

The second project, a public water and sewage network expansion towards the coastal region, will connect rural areas in the coastal zones to the public network. This will connect both permanent residences and holiday homes to the public network, enabling transportation of wastewater to a large centralised treatment plant and consequently increasing efficiency and improving wastewater treatment.

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.