EIB Finances €400 Million Helsinki Tramline Project to Boost Sustainable Transport

EIB Finances €400 Million Helsinki Tramline Project to Boost Sustainable Transport

(IN BRIEF) The European Investment Bank (EIB) has provided €400 million in financing to Helsinki for the development of the Crown Bridges Light Rail project, which will extend the city’s tram network to three eastern suburbs. The project includes the construction of three major bridges, a new tram and bus depot, and expanded bike and pedestrian pathways. The new tramline will reduce travel times and support sustainable urban development, with a completion date set for 2027. This investment aligns with EIB’s goals to advance climate action and enhance air quality in Europe.

(PRESS RELEASE) LUXEMBOURG, 1-May-2025 — /EuropaWire/ — The European Investment Bank (EIB) has agreed to provide €400 million in financing to the Finnish capital, Helsinki, for the development of a new tramline connecting the city to three eastern suburbs, the construction of a new tram and bus depot, and the expansion of bike and pedestrian paths. The financing package includes €150 million in loans to the City of Helsinki and €250 million to Metropolitan Area Transport Ltd (Pääkaupunkiseudun Kaupunkiliikenne Oy) for the “Crown Bridges Light Rail” project.

The project will extend Helsinki’s tram network to the suburbs of Laajasalo, Korkeasaari, and Kalasatama, improving travel times and accessibility. The new tramline will reduce travel times to 20 minutes, providing a sustainable transport option for residents and supporting the city’s commitment to clean public transport. The development is expected to be completed by 2027.

EIB Vice-President Thomas Östros commented, “Investing in sustainable transport is a key priority for the EIB, and this project marks an important step in advancing climate action and improving connectivity in Helsinki. It will significantly enhance the quality of life for residents, offering them greener and more efficient travel options.”

The Crown Bridges Light Rail project aligns with Helsinki’s broader plans to encourage urban development and regeneration through sustainable infrastructure. As part of the project, three major bridges will be constructed to support the tramline’s route. These include the Kruunuvuorensilta Bridge, which will be the longest at 1,200 meters, and two other bridges – Merihaansilta and Finkensilta, with lengths of 400 meters and 300 meters, respectively. All three bridges will feature bike lanes and pedestrian pavements, ensuring accessibility for all.

In addition to the tramline and bridges, the project will see the construction of Helsinki’s first combined tram and bus depot at Ruskeasuo, which will accommodate approximately 80 trams and provide maintenance facilities for both trams and buses. The depot is also designed to support regional bus traffic, offering storage and maintenance services.

The EIB financing covers 40% of the project costs, supporting the tramline construction, depot building, and the purchase of new trams. This initiative underscores the EIB’s commitment to reducing greenhouse gas emissions and improving air quality across Europe.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, the EIB finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, the capital markets union and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

In 2024, EIB Group investments in Finland rose to €2.3 billion from €992 million the year before, focusing on green projects and business innovation.

Media Contact:

Kristiina Randmaa
k.randmaa@ext.eib.org
+352 4379 – 72894

Press Office

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SOURCE: European Investment Bank