The European Investment Bank (EIB) has announced that it will contribute approximately €400m ($455.5m) in additional financing for the expansion of the Stockholm metro in Sweden.

The funding is allocated between two recipients, with the Region of Stockholm receiving Skr2.5bn ($262.9m), and the City of Stockholm to be granted Skr2bn (210.3m).

The additional loan will bring EIB’s total investment in the project to more than €1bn.

The Stockholm metro expansion project includes the construction of three new sections, totalling 30km, with 20km of double-track tunnels and 18 new stations.

This is among the largest metro expansion projects currently in progress in Europe and one of the largest infrastructure projects in Sweden, financed by the European Union. It also marks the largest investment the EIB has made in public transport within the country, according to the bank.

It is anticipated that 130,500 housing units will be developed along these new metro lines.

EIB vice-president Thomas Östros said: “This investment boosts both sustainable mobility and regional development. By providing an additional loan, we are demonstrating our long-term commitment to climate-smart investments in Europe’s growing cities. This project is an excellent example of how EU funding can benefit both people and the climate.”

The project will be developed across the municipalities of Stockholm, Nacka, Solna, and Järfälla, aiming to provide sustainable and efficient public transport for the region’s expanding population.

Currently, 730,000 individuals utilise public transport in the county on a daily basis.

City of Stockholm director general Fredrik Jurdell said: “The EIB’s continued commitment to this financial partnership reaffirms the importance of the metro expansion project for sustainable growth in the capital and the surrounding areas.

The new metro meets the needs of future generations in terms of transport and mobility, but also with regard to housing, given that housing units will be built as part of the project.”

Earlier this month, the EIB announced a financing package of €400m to facilitate the development of a new tramline in Helsinki, Finland.

This initiative is designed to improve public transport connectivity to the eastern suburbs of Laajasalo, Korkeasaari, and Kalasatama.