The European Investment Bank has agreed to provide €125 million in financing to the City of Tallinn to support a major urban investment programme running through 2030. The loan will help Estonia’s capital upgrade public buildings, improve transport systems and develop greener, more accessible public spaces.
The financing will support a broad pipeline of projects across Tallinn, including the construction and renovation of schools, sports facilities, cultural spaces and social infrastructure. It will also support improvements to roads, pedestrian routes, cycling infrastructure, public transport systems and urban regeneration projects.
The loan is structured as a framework loan, giving Tallinn flexibility to allocate funding across multiple projects as they are prepared and implemented. The EIB financing will cover 45 percent of the total programme cost, which is estimated at around €278 million.
This is the fifth financing operation between the EIB and Tallinn since 2008, reflecting a long-standing partnership focused on urban development and infrastructure improvement. Previous agreements also supported city development projects, helping Tallinn respond to growing service and mobility needs.
Tallinn is home to around 460,000 people and serves as Estonia’s main economic and transport hub. The planned investments are expected to help the city meet rising demand for quality public services, modern infrastructure and sustainable mobility while also supporting jobs and economic activity during implementation.
Around 58 percent of the total investment is expected to contribute to climate and environmental goals. These projects will support Tallinn’s efforts to improve energy efficiency, promote greener transport, expand public spaces and strengthen the city’s long-term environmental resilience.
Tallinn Mayor Peeter Raudsepp said the city must continue investing in infrastructure, education and long-term development to remain competitive and attractive for investment and growth. He described the EIB as an important partner in enabling these investments.
The remaining cost of Tallinn’s investment programme will be financed by the city and other sources, including European Union funds. Under the framework structure, projects will be selected over time in line with Tallinn’s long-term development strategy and investment priorities.
