EIB allocates $453m for Helsinki tramline and depot project in Finland

The European Investment Bank (EIB) has announced a financing package of €400m ($453m) to support the development of a new tramline in Helsinki, Finland, aimed at enhancing public transport connectivity to three suburbs.

Helsinki, with a population of 685,000, is focusing on expanding its clean public transport system with projects like the tramline and new cycling infrastructure.

The EIB funding includes a €150m ($169.9m) loan to the City of Helsinki and a €250m ($283.1m) loan to Metropolitan Area Transport Ltd (Paakaupunkiseudun Kaupunkiliikenne Oy) for the Crown Bridges Light Rail initiative.

The project aims to extend the tram network to the eastern suburbs of Laajasalo, Korkeasaari, and Kalasatama, reducing travel times to approximately 20 minutes.

Additionally, the initiative will enhance infrastructure for cyclists and pedestrians, with completion expected by 2027.

The tramline will include three major bridges, including the 1,200m long Kruunuvuorensilta Bridge, which features a pylon reaching 135m.

The other two bridges, Merihaansilta and Finkensilta, will be 400m and 300m long, respectively. Each bridge will accommodate dedicated bike lanes and pedestrian pathways.

In addition to the tramline, the project will establish the Ruskeasuo depot, Finland’s first integrated tram and bus depot, designed to house around 80 trams.

This facility will provide daily maintenance and repair services, as well as support regional bus operations with designated parking and maintenance areas.

EIB vice-president Thomas Ostros said: “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.

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

The EIB’s financial contribution represents 40% of the total project costs, which will be allocated towards the construction of the tramline and depot, as well as the procurement of new trams.

Last month, the EIB signed a €450m ($516m) loan agreement with PKP Polskie Linie Kolejowe (PLK SA) to modernise a key rail line in southern Poland.

This investment will upgrade 120km of railway infrastructure, supporting the EU’s cohesion and climate policy goals.