The European Investment Bank (EIB) announced it is providing a €400 million financing package to help the Finnish capital Helsinki build a tramline to three suburbs, construct a new tram and bus depot, purchase new trams, and add pathways for cyclists and pedestrians.

The EIB support involves loans of €150 million to the City of Helsinki and €250 million to metropolitan transport company Metropolitan Area Transport Ltd (Pääkaupunkiseudun Kaupunkiliikenne Oy) for the “Crown Bridges Light Rail” project.

The goals are to extend Helsinki’s tram system to the eastern suburbs of Laajasalo, Korkeasaari and Kalasatama with a new line that will halve travel times to 20 minutes and to increase the city’s bike and pedestrian paths. The project is due to be completed by 2027.

“Investing in sustainable transport is a priority for the EIB and provides a key step toward advancing climate action and enhancing connectivity in the city,” said EIB Vice-President Thomas Östros.

“This project will play an important role in improving the quality of life for Helsinki’s residents.”

The EIB said the Crown Bridges Light Rail reflects a commitment by Helsinki, which has a population of 685,000, to expand clean public transport. That step should in turn stimulate urban development and regeneration.

“Because Laajasalo and Korkeasaari are islands – Helsinki has around 300 of them – the project features three major bridges over which the new tramline will travel,” said the EIB>

“The longest, Kruunuvuorensilta Bridge, will be 1,200 metres and have a pylon rising to 135 metres. The two other bridges – Merihaansilta and Finkensilta – will have lengths of 400 metres and 300 metres, respectively.

“All three bridges will have bike lanes that are three metres wide and pedestrian pavements with widths of between two and six metres.

“The project includes constructing Helsinki’s Ruskeasuo depot, Finland’s first combined tram and bus depot. It offers storage for about 80 trams, daily maintenance and repair facilities, and a wheel lathe track. The depot also serves regional bus traffic, with roof parking and maintenance spaces for buses.

“The EIB financing covers 40% of the project costs and will go towards building the tramline and the depot as well as buying new tram sets.

“The support aligns with EIB pledges to advance efforts in Europe to reduce greenhouse gas emissions and improve air quality.”