NIB allocates EUR 45 million for Estlink-2
NIB has committed EUR 45 million for the construction of Estlink-2, a new high-voltage power connection across the Gulf of Finland between the Baltic countries and the Nordic region.
Two loan agreements with the Estonian state-owned transmission system operator Elering OÜ, for EUR 25 million, and the Finnish national electricity transmission system operator Fingrid Oyj, for EUR 20 million, were signed for this purpose with a 15-year maturity.
Once the new 650 MW link is in operation in 2014, the capacity of the interconnection between Estonia and Finland will increase up to 1000 MW. The increase of the transmission capacity is one of the preconditions of the integration of the future power market between the Baltic countries and Nord Pool Spot. In 2005, NIB co-financed the construction of Estlink-1, the first ever connection between the Baltic countries and the EU.
“NIB is committed to promoting the integration of the Baltic power networks into the regional cooperation. We see it as a key to securing energy supply and sustainable development of the whole Baltic Sea region,” says Johnny Åkerholm, NIB President and CEO.
The new electricity interconnection will be built between the substation in Püssi in north-eastern Estonia and Anttila in southern Finland. Of the entire 170-kilometre length of the link, 145 kilometres will be laid as a submarine cable on the sea bed.
The total budget of the project is close to EUR 320 million. Besides the NIB loans, the Estlink-2 project is financed by the EU, Fingrid, and the European Investment Bank.
The Nordic Investment Bank is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing to the energy, environmental, transport, logistics and communications, and innovation sectors for projects that strengthen competitiveness and enhance the environment. NIB has the highest possible credit rating, AAA/aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
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