NEFCO has funded a loan to be on-lent by the Nordic Investment Bank (NIB) to the Russian municipal water utility company Novgorod Vodokanal.
The loan is aimed at improving the drinking-water supply and wastewater management in the city of Veliky Novgorod in Northwest Russia. The loan agreement was signed on Thursday.
The new deal has a 10-year maturity and totals EUR 4 million. The NIB loan will finance the replacement of the city’s water intake pumping station, the refurbishment of freshwater pipelines and the sewage collection system in order to reduce leakages of untreated wastewater.
This project will contribute to the fulfilment of the Baltic Sea Action Plan adopted by the Baltic Marine Environment Protection Commission (HELCOM) and is being implemented as part of the Northern Dimension Environmental Partnership’s (NDEP) programme for Northwest Russia.
The total cost of the project is estimated at EUR 23 million, partly financed with this NIB loan and a EUR 3 million grant from the NDEP Fund.