30 January 2015
The President of the European Investment Bank (EIB), Werner Hoyer, has signed a SEK 1.8 billion (around EUR 200 million) long-term loan agreement to finance the upgrading of municipal infrastructure in Uppsala. During his official visit to Sweden, President Hoyer also met Finance Minister Magdalena Andersson to discuss the Investment Plan for Europe. The plan is designed to catalyse private and public investment and mobilise EUR 315 billion over three years, enhancing the EU’s competitiveness and leading to stronger growth as well as to the creation of new jobs in strategic sectors of the economy.
At the signing ceremony, EIB President Werner Hoyer said: “Urban renewal and regeneration in the pursuit of more sustainable and competitive cities is a strategic objective of the European Investment Bank. We welcome this agreement with the Municipality of Uppsala as it will enable us to finance investments to cater for the needs of its growing population. They will also promote long-term economic growth in the municipality and the region as a whole.”
Fredrik Ahlstedt, Deputy Mayor of Uppsala said: “We are very pleased to sign this loan contract with the EIB. The loan will help to secure the financing of the city of Uppsala's investments over the next few years. The fact that the European Investment Bank is providing a loan to the city of Uppsala is also a seal of approval for our organisation.”
With more than 200 000 inhabitants, Uppsala is Sweden’s fourth largest municipality. Rapid economic and cultural change, including a growing population, has shaped the city’s planning priorities. The EIB loan will contribute to improving the social and environmental living conditions of Uppsala’s residents by supporting the construction of public rental housing, the upgrading of schools and the creation of new cycle routes, parks and green spaces. The traffic schemes – mainly the refurbishment of streets and modernisation of transport infrastructure – will reduce journey times and vehicle operating costs, promoting more sustainable public transport. Investment in water, sewerage, wastewater treatment and waste management will help to preserve the local environment and reduce public health risks in Uppsala.
The EIB loan provides for diversification of the municipality’s long-term financing and extends the maturity profile of its debt. This is the first EIB operation with Uppsala Municipality, and the third time that the EIB has lent through a framework loan to a municipality in Sweden. A framework loan groups smaller investments into a larger project, and is an instrument that works well when the Bank finances municipalities. Two other Swedish cities – Västerås and Stockholm – were supported by the EU bank in 2014 through framework loans financing education, housing and transport investments. Total EIB financing in Sweden in 2014 amounted to EUR 1.41 billion, with the main focus on projects promoting sustainable transport, energy efficiency and urban development.