Our Region’s EU Projects in the Spotlight: Significant Loan Financing from the European Investment Bank for the Construction of the Tampere Tramway!

In a new article series by the Tampere Region EU Office, we present projects from Tampere and the Pirkanmaa region for which local actors have successfully secured funding from various European Union financing instruments.

The first part of the series introduces the Pirkkala–Linnainmaa project entity of Tampere Tramway Ltd (TRO), for which TRO has received a €75 million loan from the European Investment Bank (EIB). The project includes new lines from Sorin aukio to Pirkkala, from Kauppi campus to Linnainmaa, as well as the development of existing tram infrastructure to accommodate increased traffic resulting from the new lines. The project will be implemented in two phases, with the first phase of operations scheduled to begin in August 2028.

Project financing

Cooperation between the City of Tampere, Tampere Tramway Ltd, and the European Investment Bank dates back several years. In fact, the EIB supported the first phase of the Tampere tramway between 2019 and 2021 with loans totaling €150 million. The results of this cooperation are now visible in the daily lives of residents as a highly functional mode of public transport. Connections with the bank were therefore already in place, and the bank was familiar with the work carried out by TRO in Tampere. As an interesting detail of this cooperation, one of the signatories of the financing agreement in 2017 was then Vice-President of the EIB, current President of the Republic of Finland Alexander Stubb.

The financing application process for the Pirkkala–Linnainmaa project began immediately after the Tampere City Council and the Pirkkala Municipal Council made the decision to construct the tramway in October 2024. Antti Ainola, CFO of TRO, who coordinated the financing application, described the cooperation and process as follows:

“The entire process from signing the construction decision took about a year and a half, as the EIB conducts a very thorough assessment to ensure that the project meets its criteria and supports EU policy objectives. In this project, the process was particularly facilitated by the EIB’s existing understanding of the Tampere tramway. Nevertheless, thorough preparation on our side and clear strategic direction communicated effectively to the Investment Bank are essential. It is advisable to prepare in advance for additional questions and requests for clarification. For example, it is also beneficial to be in contact with EIB officials in Helsinki already during the preparation of the investment decision, so that the necessary information can be compiled simultaneously. Although the process is highly regulated, it proceeded smoothly. For example, travel between Luxembourg and Tampere was not required, and communication took place mainly electronically. Required documents can also be submitted to the EIB in Finnish, after which they are translated into English by the Bank.”

It’s worth applying

It is in the interest of Tampere, Pirkanmaa, and Finland more broadly to act actively at the European level. For companies and businesses in Pirkanmaa in particular, it is highly important to be aware of the various funding opportunities available at the European level. Pekka Sirviö, CEO of TRO, commented on EIB financing as follows:

“A clear strategic vision and solid groundwork, meaning a strong project, are key when applying for financing. EIB loans can cover up to 50% of a project’s value, and based on our experience, the cost of financing is very competitive. As the process is time-consuming and regulated, the EIB expects projects of a certain scale, although there is no formal upper limit for financing.”

In addition to the EIB, there are several other funding opportunities available to Finnish actors. Product development, innovation, and development activities rank very high in the European Commission’s strategy, which is excellent news for Pirkanmaa. The region has significant expertise in areas such as security, advanced technologies, urban planning, and public transport. This is precisely the type of development the Commission aims to support, and Finnish actors have performed very well in the Horizon Europe funding programme, which focuses on these areas. Smaller actors can also access funding through instruments such as the European Innovation Council calls, which are open year-round. For questions related to these and other EU funding programmes, the Tampere and Pirkanmaa EU Office and Business Tampere provide support to local stakeholders and encourage them to explore and apply for funding.