The European Investment Bank (EIB) is participating in the financing of investments at the Käppala regional waste water treatment plant in Lidingö in the Stockholm area.

A loan agreement has been signed with the Käppala Association, founded by nine municipalities in the region, for a first loan tranche of SEK 50 million (ECU 6 million) for the project.

The existing sewage treatment plant is being extended and modernised to increase its capacity by some 40% to ensure compliance with new effluent discharge requirements.

The EIB is financing the project as it will help protect the environment by reducing the pollution load of waste water originating from the northern municipalities of the Stockholm metropolitan area and contribute to improve the water quality of the Stockholm archipelago and ultimately the Baltic Sea.

In particular, the nitrogen content of the effluent will be reduced by more than 60% after completion of the project in the year 2000.

The EIB has already lent some SEK 520 million (ECU 61 million) for the financing of waste water treatment plants in Stockholm and Göteborg.

EIB lending in Sweden so far amounts to some SEK 18 billion (ECU 2 billion) for road and rail infrastructure improvements, upgrading of telecommunications, energy production and distribution, environment related projects as well as small and medium sized industrial projects.

The European Investment Bank (EIB), the financial institution of the EU, contributes by means of its long-term loans towards the integration and balanced development of its member countries as well as countries outside the Union.

The conversion rates used by the EIB for statistical purposes during the current quarter are those obtaining on 30 September 1997, when ECU 1 = GBP 0.69, IEP 0.76, USD 1.113,SEK 8.43766.