The European Investment Bank (EIB) has signed a SEK 1 billion ($120 million) loan to upgrade the wastewater treatment plant in Kappalaforbundet, an inter-municipality partnership in the Stockholm archipelago.

Kappalaforbundet wastewater treatment plant is the third-largest in Sweden and produces sludge, biogas and heat that are recycled for the community.

“This upgrade will secure the water treatment services for our 11-member municipalities for many decades to come and at the same time greatly improve the water quality of our beautiful archipelago,” said Andreas Thunberg, CEO of Kappalaforbundet.

The plant will be upgraded to accommodate the wastewater of some 900,000 people.