- EIB lends City of Tallinn €125 million for urban improvements through 2030
- Projects span schools, transport and public spaces
- Loan marks fifth EIB operation with Tallinn, building on long-standing cooperation
The European Investment Bank (EIB) has agreed to lend €125 million to the City of Tallinn to finance a broad urban investment programme running to 2030.
The EIB financing will support a pipeline of projects in the Estonian capital including upgrades to public buildings such as schools and social facilities as well as improvements to transport and green spaces.
The financing is structured as a framework loan, allowing Tallinn to allocate funds across multiple projects as they are prepared and implemented. The loan covers 45% of the total programme cost of about €278 million and marks the fifth EIB financing operation with Tallinn since 2008.
“This financing supports Tallinn’s long-term investment programme and builds on our strong cooperation with the city,” said EIB Vice-President Karl Nehammer. “It will deliver concrete improvements in infrastructure, services and mobility that benefit residents and businesses.”
Tallinn, home to around 460,000 people, is Estonia’s main economic and transport hub. The planned investments aim to ensure that public services and infrastructure meet growing demand, with the programme projected to generate economic activity and support jobs during implementation.
The remainder of Tallinn’s investment programme is being financed by the city and other sources including European Union funds. The projects will cover areas such as:
- construction and renovation of schools, sports and cultural facilities
- upgrades to roads, pedestrian and cycling infrastructure
- improvements to public transport systems
- development of public spaces and urban regeneration
Around 58% of the total investment is projected to contribute to climate- and environment-related goals. Nonetheless, the EIB loan terms are flexible across sectors in line with the city’s investment priorities.
"We have to keep in mind that capital regions are competing for investments and economic growth,” said Tallinn Mayor Peeter Raudsepp. “To be an attractive hub and destination point Tallinn has to invest in infrastructure, education and long-term development. I am glad that the EIB is one of the key enablers to finance those investments.”
Tallinn will implement the programme as part of its long-term development strategy, with projects selected over time under the framework structure. The new loan marks the EIB’s fifth financing operation with Tallinn. The previous agreements also covered urban-development projects, with the first accord dating to 2008.
Background information
EIB Group
The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.