Nordic Investment Bank Supports Borlänge Infrastructure Modernization with SEK 250 Million Financing Agreement

Nordic Investment Bank Supports Borlänge Infrastructure Modernization with SEK 250 Million Financing Agreement

(IN BRIEF) Nordic Investment Bank and the Municipality of Borlänge have agreed on a SEK 250 million financing arrangement to support significant upgrades to the city’s electricity and water infrastructure. The funding will enable Borlänge Energi to carry out a multi-year investment programme focused on modernizing the electricity grid through new underground cabling and replacing outdated overhead lines, improving both capacity and reliability. At the same time, the project includes expanding and upgrading drinking water and wastewater networks in several areas to protect groundwater resources, reduce water losses, and provide improved services to households currently using private systems. The initiative is designed to enhance infrastructure resilience, support population growth, and ensure the long-term sustainability of essential public utilities in the region.

(PRESS RELEASE) HELSINKI, 24-Apr-2026 — /EuropaWire/ — Nordic Investment Bank has entered into a financing agreement with the Municipality of Borlänge to support a comprehensive upgrade of local electricity and water infrastructure. The agreement establishes a SEK 250 million, 15-year uncommitted credit facility aimed at co-financing a series of utility investments designed to strengthen essential public services.

The funding will be channelled to Borlänge Energi, the city-owned utility provider responsible for executing the projects. The investment programme spans both energy and water systems, reflecting a coordinated effort to modernize infrastructure and improve long-term service reliability.

A key component of the initiative focuses on upgrading the electricity distribution network between 2025 and 2029. The programme includes the installation of approximately 55 kilometres of new underground cable annually, alongside the replacement of aging overhead lines. These measures are expected to expand transmission capacity, enhance operational stability, and lower maintenance requirements over time.

In parallel, the financing will support developments in the water sector, including expansion and refurbishment works in the areas of Pusselbo, Repbäcken, Lennheden, and Kyna. These projects are designed to safeguard an important national groundwater resource, reduce system water losses, and improve the quality of drinking water. By extending the municipal network, households currently dependent on private wells and individual wastewater systems will gain access to centralized, regulated services.

The programme is intended to ensure that Borlänge’s infrastructure can accommodate future growth while maintaining high standards of resilience and environmental protection. Strengthening both electricity and water systems is expected to provide long-term benefits for residents and businesses alike, supporting sustainable urban development.

André Küüsvek, President and CEO of Nordic Investment Bank, emphasized the importance of the initiative, noting that modernizing critical infrastructure is essential to maintaining reliable public services and supporting community expansion.

Borlänge, the largest city in Sweden’s Dalarna region, owns Borlänge Energi, which delivers a broad range of services including electricity distribution, district heating, broadband networks, and water and wastewater management.

NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.

Media Contacts: 

Tiina Kuusela, Senior Banker, +358 10 618 0241, tiina.kuusela@nib.int

Tommy Hellström, Associate Communications Officer, +358 10 618 0214, tommy.hellstrom@nib.int

SOURCE: Nordic Investment Bank