Latvian capital Riga to get water-system upgrades with €70 million EIB loan to utility Rīgas ūdens

• EIB lends €70 million to municipal utility SIA Rīgas ūdens to improve and expand Latvian capital's water-supply network.
• Project to reduce drinking-water seepages and bolster environmental protection.
• New financing deal coincides with opening of EIB Group's first office in Latvia.

The Latvian capital Riga will upgrade and expand its water-supply network with the help of a €70 million European Investment Bank (EIB) loan to municipal utility SIA Rīgas ūdens. The company, serving over 600,000 residents, will use the EIB credit to curb drinking water network seepages, reduce pollution threats, rehabilitate or upgrade nearly 60 km of supply pipes, and add 27 km of new supply pipes.

Rīgas ūdens, Latvia’s largest supplier of drinking water and sewage services, will also bolster the network’s ability to cope with stormwaters and increase the use of renewable energy at a wastewater treatment plant. The EIB financing covers 41% of the costs of the project, which is due to be completed by 2028.

"This investment underscores our commitment to environmental protection and climate action in Latvia," EIB Vice-President Thomas Östros said today in Riga where he signed the financing agreement. "We are enhancing the quality of life for Riga's residents and contributing to a sustainable future for the country."

This new loan builds on a 2022 accord in which the EIB provided Rīgas ūdens with a €60 million loan for water-infrastructure development.

"Riga is making significant strides in improving its infrastructure with a major investment in its water system,” said the Mayor of Riga Vilnis Ķirsis. “The €70 million loan from the EIB is a significant step forward for the city. This investment highlights the city's commitment to modernizing essential services for its residents and ensuring sustainable water management. Upgrading a city's water system can help reduce water loss, improve water quality, and boost efficiency, all of 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."

The latest financing agreement coincides with the opening of the EIB Group's first office in Latvia. The new hub, located in Riga, will accelerate strategic investments in climate action, digitalisation, housing, security and defence while deepening cooperation with Latvian partners including small and medium-sized enterprises (SMEs).

Background information  

EIB 

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.  

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.  

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

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Rigas udens

SIA "Rīgas ūdens" is the largest water management company in Latvia and provides water supply and wastewater collection and treatment services in Riga and its neighbourhood. “Rīgas ūdens” is a capital company wholly owned by the municipality of Riga State City.