The European Bank for Reconstruction and Development has supported the improvement of energy efficiency in multi-apartment residential buildings in Lithuania
The European Bank for Reconstruction and Development (EBRD) granted to UAB Viešųjų investicijų plėtros agentūra (VIPA) a loan of EUR 67.5 million to finance projects for the improvement of energy efficiency of multi-apartment residential buildings. The received EBRD loan will be used to finance projects of renovation of multi-apartment buildings that are already being implemented under the Multi-Apartment Building Renovation (Modernization) Programme approved by the Government. This is the second loan which the EBRD has disbursed to VIPA, establishing a successful cooperation between the two institutions in financing green projects.
On 4 August, UAB Viešųjų Investicijų Plėtros Agentūra (VIPA) signed an agreement with the European Bank for Reconstruction and Development (EBRD) on the basis of which a loan for up to EUR 67.5 million was issued for the renovation of multi-apartment buildings in Lithuania. This loan will provide an opportunity to finance the renovation of about 170 multi-apartment buildings, which not only will speed-up the renovation in the country, but will also significantly improve the conditions of living of residents of renovated multi-apartment buildings.
Renovation of multi-apartment buildings is a priority energy efficiency measure in Lithuania, directly related to the majority of the country’s population. According to calculations, there are about 40 000 multi-apartment buildings, about 80 percent of which are in the lowest building energy efficiency class. Poor energy performance of these buildings results in significant losses of heat, which in turn leads to high apartment maintenance costs. Some residents, who cannot afford them, refer to state or municipal institutions for help. Renovation of multi-apartment buildings is not only a way to reduce apartment maintenance costs, but also an opportunity to improve the state of the building. It is also an effective instrument for reducing energy poverty and a key tool in building sustainable cities. Investments in the renovation of multi-apartment buildings create a sustainable and harmonious living environment, therefore, the need for investments in this sector will only increase in the long run, in pursuit of achieving the goals of the green course and the renovation wave strategy.
“This investment by the European Bank for Reconstruction and Development is a uniquely structured loan simultaneously financing many projects for the renovation of multi-apartment buildings. We also aim to rely on the experience gained in other countries,” said Nandita Parshad, CEO of the Sustainable Infrastructure Group of the EBRD.
The Ministry of Finance of the Republic of Lithuania and the Ministry of Environment of the Republic of Lithuania also approved the signing of the loan, as the involvement of such international financial institutions as the EBRD in the Lithuanian multi-apartment building renovation programme further enhances the country’s credibility in the eyes of investors.
The Vice Minister of Finance Vaida Česnulevičiūtė says that “this is an important investment in the energy efficiency of buildings in Lithuania, which not only reduces costs incurred by residents, but also helps to implement the goals of transition to a green economy and contributes to combating climate change. We are pleased with the cooperation with the European Bank for Reconstruction and Development and the opportunities it offers to Lithuania.”
To the best of the knowledge of the Vice Minister of the Environment Darius Kvedaravičius, currently there are about 1 500 projects for the renovation of multi-apartment buildings under implementation in Lithuania, the total investment value of which exceeds EUR 600 million. The completion of a third of these projects is scheduled in 2021. The plan is to increase the pace of building renovation, which has led to a comprehensive review of the current processes, introducing innovative technologies that will speed up the course of construction works and ensure a better quality of work.
“The funds raised under this financing agreement will be used to finance the projects that have already been prepared. Moreover, the cooperation with a highly rated financial institution, the European Bank for Reconstruction and Development, demonstrates confidence in the Lithuanian multi-apartment building renovation model and the state support scheme, which the European Commission has recognized as an example of good practice. We hope that this loan will encourage other private local and international investors to participate in the programme for the renovation of multi-apartment buildings, while ensuring its continuity and sustainability,” said the Vice Minister.
Since 2013, VIPA has participated in financing schemes for the renovation (modernization) of multi-apartment buildings and this is already the second loan granted by the EBRD to VIPA for the renovation of multi-apartment buildings in Lithuania.
“We are delighted with our long-term partnership with the European Bank for Reconstruction and Development. The Multi-Apartment Building Modernization Fund managed by VIPA has been designed to ensure stable financing of multi-apartment building modernization projects, and this second EBRD loan helps us to continue to successfully pursue this important goal for the people of Lithuania,” says Gvidas Dargužas, CEO of VIPA.