The European Investment Bank (EIB) has today signed a EUR 220 million loan with the City of Stockholm for the construction of the Northern Link of Stockholm's ring road, connecting Uppsalavägen in the west of the city and Lidingövägen in the east.

The Stockholm Northern Link will form part of the Nordic Triangle, one of the 30 Trans-European Networks priority projects, and will connect two major transport corridors - the E4 (Copenhagen-Stockholm) and E20 (Göteborg-Stockholm).

The project also aims to improve accessibility to the northeastern area of the city, as well as to the Port of Stockholm with links to Finland, Estonia and Latvia.

This project generates significant social and environmental benefits. By redirecting traffic into the new 5 km long group of tunnels, it is expected that congestion and pollution will be significantly reduced, and road safety promoted. Implementation of the project is greatly aided by the fact that the promoter, Vägverket, the Swedish National Road Administration, has just completed a similar tunnel on the south side of the city.

The Bank's involvement in this project accelerates project construction, providing financing that would otherwise not be available until 2008. EIB participation also brings with important added value since it offers competitive diversification in City of Stockholm's funding.

Owned by the 25 EU Member States, the EIB acts as the European Union's long-term financing arm, supporting the policies of the Union. Amongst the priorities of the EIB, is the development of Trans-European Networks (TEN).

The EIB has been active in Sweden since end-1994, with cumulative financing in the country standing at EUR 7.2 bn. Lending priorities in Sweden cover transport, energy, telecommunications infrastructure and industry.