The Nordic Investment Bank has signed a €75m loan agreement with Kumppanuuskoulut, a special purpose vehicle, to support the construction of new schools and day-care buildings in Espoo, Finland.
The 21.5-year loan will be used to finance the construction of five new elementary schools and three day-care facilities, serving 4,000 students.
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The project is touted to be the first public-private-partnership (PPP) executed by a Finnish municipality to support the public education infrastructure.
Kumppanuuskoulut will be responsible for the financing, planning, construction and maintenance of the project until 2042. The new facilities are scheduled to open between 2022 and 2024.
The European Investment Bank (EIB) has provided a 21.5-year, €60m loan to the investment. Furthermore, OP Corporate Bank has supported the project with a loan of up to €35m.
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NIB president and CEO Henrik Normann said: “The project has measurable sustainability targets and is the first PPP project by a Finnish municipality for building construction.
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By GlobalData“Investments in early childhood education will allow Espoo to keep class sizes small and to provide advanced learning environments. This is expected to have positive and widely distributed effects on academic and labour market outcomes.”
EIB vice-president Thomas Östros said: “This project can really be a game-changer for Finland. It’s an excellent example of how the public sector can use financing under the “Investment Plan for Europe” to get private investors on board for the public good.”
“Finland is already topping the charts when it comes to successful education, and it’s encouraging to see that they keep investing to provide children with the best possible facilities to learn and study in.”
NIB said that the facilities will be designed in line with the Finnish green building standard RTS and aim to achieve four-star certification. The ground heat pumps will generate a significant part of the energy demand.
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The new facilities are scheduled to open between 2022 and 2024. (Credit: The Nordic Investment Bank)
