NIB Finances Pärnu’s Largest Infrastructure Project with EUR 15 Million Loan

NIB Finances Pärnu’s Largest Infrastructure Project with EUR 15 Million Loan

(IN BRIEF) The Nordic Investment Bank (NIB) has provided a EUR 15 million loan to the City of Pärnu, Estonia, to fund key infrastructure projects, including the construction of a new city bridge, which will be the longest in the Baltic States. The loan also supports the development of light traffic infrastructure and renovations in the education sector. This funding is part of a broader credit facility established in 2021, allowing Pärnu to continue its urban development while ensuring balanced growth across the city.

(PRESS RELEASE) HELSINKI, 3-Sep-2024 — /EuropaWire/ — The City of Pärnu has secured a EUR 15 million loan from the Nordic Investment Bank (NIB) to finance several key infrastructure projects as part of the city’s ongoing development program. This funding will primarily support the construction of a new city bridge, which is set to become the longest bridge in the Baltic States, as well as improvements to light traffic infrastructure and educational facilities.

The agreement between NIB and Pärnu builds on a thirty-year uncommitted credit facility established in 2021, which allows the city to borrow up to EUR 35 million for urban development projects. The disbursement of EUR 15 million marks a significant step in realizing these ambitious plans.

The centerpiece of Pärnu’s infrastructure development is the new city bridge, a EUR 40 million investment that will span 355 meters across the Pärnu River. The bridge’s 140-meter span will be the longest in the Baltic region, symbolizing a major engineering achievement for the city and Estonia. Scheduled for completion in June 2025, the bridge will connect the city’s South bank to its northern neighborhoods, facilitating smoother traffic flow and enhancing connectivity.

In addition to the bridge, the loan will fund the development of light traffic infrastructure, including dedicated corridors for cyclists and pedestrians, promoting safer and more sustainable urban mobility. The loan will also finance renovations in the education sector, focusing on improving energy efficiency and room planning in facilities such as Raeküla School and Ülejõe kindergarten.

City officials have expressed confidence that NIB’s support will not only enable the successful completion of these projects but also ensure that Pärnu continues to develop its urban landscape without compromising on other critical investments.

“The new city bridge is more than just an infrastructure project; it’s a symbol of Pärnu’s growth and Estonia’s progress,” said André Küüsvek, President & CEO of NIB. “We are proud to contribute to this landmark project that will benefit the city’s residents for generations to come.”

Meelis Kukk, Deputy Mayor of Pärnu, emphasized the importance of NIB’s financing in enabling the city to pursue multiple development goals simultaneously. “The bridge requires substantial investment, but with NIB’s backing, we can also advance other vital projects, ensuring balanced growth across Pärnu,” he stated.

Pärnu, Estonia’s fourth-largest city with around 50,000 inhabitants, plays a crucial role in the region’s transportation network, lying on the key route between Tallinn and Riga. The city’s continued investment in infrastructure is expected to enhance its attractiveness as a hub for economic activity and tourism.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

Media Contacts:

Kersti Talving
Country Lead for Estonia
+358 10 618 0245
kersti.talving@nib.int

Anita Algus
Communications
+358 10 618 0524
anita.algus@nib.int

SOURCE: Nordic Investment Bank