Riga Secures €70M EIB Loan to Upgrade Water Infrastructure for Sustainability and Growth

Thomas Östros, EIB Vice-President, emphasized that this investment is more than just an infrastructure upgrade – it is a step toward environmental protection and climate action.

Riga, the capital of Latvia, is taking a major step toward improving its water-supply network with the help of a €70 million loan from the European Investment Bank (EIB). This substantial financial backing will support significant upgrades and expansion efforts for the city's water infrastructure, ultimately benefiting over 600,000 residents and ensuring more reliable, sustainable access to water.

The €70 million loan, signed by EIB Vice-President Thomas Östros and Rīgas ūdens, the municipal utility responsible for water and sewage services in the city, will help tackle key challenges in Riga's water-supply network. The funding will go towards reducing seepages in drinking water systems, minimizing pollution risks, and ensuring better stormwater management. Furthermore, nearly 60 km of existing water supply pipes will be rehabilitated or upgraded, while an additional 27 km of new pipes will be installed to extend coverage and improve service delivery.

One of the central goals of this project is to boost the sustainability and resilience of Riga's water system. As part of the upgrade, the utility plans to enhance the ability of the network to handle stormwater, which is particularly important as climate change brings more unpredictable weather patterns. Another critical element of the project is increasing the use of renewable energy at the city's wastewater treatment plant, contributing to the reduction of the overall environmental footprint of water treatment processes.

The €70 million loan represents 41% of the total project cost, with the remaining financing to be sourced from other channels. The project is expected to be completed by 2028, marking a significant investment in Riga's infrastructure and a crucial step in addressing the city’s growing needs for sustainable water management. This new investment builds on a previous €60 million loan provided by the EIB in 2022, reinforcing a continued commitment to modernizing water infrastructure in Latvia.

Thomas Östros, EIB Vice-President, emphasized that this investment is more than just an infrastructure upgrade – it is a step toward environmental protection and climate action. “This investment underscores our commitment to environmental protection and climate action in Latvia. We are enhancing the quality of life for Riga’s residents and contributing to a sustainable future for the country,” Östros stated at the signing ceremony in Riga.

The Mayor of Riga, Vilnis Ķirsis, also expressed enthusiasm for the project, noting that it highlights the city’s dedication to modernizing essential public services and preparing for the challenges posed by urban growth and climate change. “Riga is making significant strides in improving its infrastructure with a major investment in its water system. This investment will reduce water loss, improve water quality, and boost efficiency, which are critical as urban populations grow and climate challenges increase. It’s also likely to create jobs and improve the city’s overall economic outlook,” said Ķirsis.

The loan agreement aligns with broader strategic goals set by the EIB, including deepening cooperation with Latvian partners and accelerating investments in areas such as climate action, digitalisation, housing, and security. In a further indication of its commitment to Latvia, the EIB Group has also opened its first office in the country, located in Riga. This office will serve as a hub for advancing key projects and fostering stronger ties with Latvian partners, including small and medium-sized enterprises (SMEs), in the years to come.

With this ongoing investment in its water infrastructure, Riga is positioning itself to meet future challenges and ensure the delivery of high-quality services to its residents. The project will not only improve the efficiency and sustainability of water supply but also contribute to the city’s long-term environmental goals, helping it adapt to the changing climate while fostering economic growth and job creation. As the city continues to modernize its infrastructure, it is setting a strong example for other cities facing similar challenges in the context of urbanization and climate change.