TIPS to finance street lighting modernisation project in Kaunas district
Sustainable Resources Investment Platform or “Tvarių investicijų plėtros skatinimas” (TIPS) (English: Promoting Sustainable Resource Development), a JV established by the Public Investment Development Agency (VIPA) and European Energy Efficiency Fund (eeef), signed a loan agreement with UAB Venteos, which will implement, Kaunas district street lighting modernisation project.
In summer 2022, Kaunas District Municipality entered into a public-private partnership agreement for the modernisation and operation of the street lighting system with a consortium of UAB Frineta and its subsidiary UAB Venteos, which was selected as a result of a public procurement process. The aim of the partnership agreement is to ensure high-quality street lighting upgrade in the municipality by improving the energy efficiency of the lighting system. In addition, the project will improve the technical condition of the lighting system by introducing modern and efficient lighting and control measures.
Total investment amounts to EUR 3.7 million, of which the loan from TIPS to the contractor UAB Venteos accounts for EUR 2.9 million.
“This is the first street lighting modernisation project financed by TIPS, which will not only create better and more qualitative living conditions for residents of Kaunas district but will also allow Kaunas District Municipality to achieve significant energy savings. Also, it is gratifying that this is the second public-private partnership project implemented by Kaunas District Municipality, to which VIPA is contributing with their funds. Two years ago, together with SEB bankas, we financed the project of educational institutions in Kaunas district,” says Asta Gladkauskienė, Head of VIPA Customer Service Department.
As part of the Kaunas district street lighting system modernisation project, it is planned to install around 9,000 LED luminaries with automatic dimming modules, illuminate about 50 street crossings, install new and upgrade the existing management, control and monitoring equipment. These measures are expected to reduce energy consumption by more than 70%.
“Street lighting is of great importance for the safety of residents. Statistics confirm that most accidents and thefts occur during the dark hours of the day. Proper lighting significantly increases the safety of residents, reduces the likelihood of accidents, and crimes and makes the area more attractive. Another extremely important factor these days is the reduction of electricity costs”, emphasized Kaunas District Mayor Valerijus Makūnas.
According to Mantas Rikteris, Deputy Director of Kaunas District Municipal Administration, the modernisation of the district street lighting network will reduce energy consumption and the municipality’s electricity costs, and the municipality will be able to direct the saved funds for the development of the street lighting network and for other works to improve the quality of life in the Kaunas district community.
The concession agreement between Kaunas District Municipality and UAB Venteos has been concluded for 15 years. In addition to investment works, UAB Venteos will also perform maintenance operations and manage energy consumption and monitor the lighting levels.
“eeef supported Kaunas District Municipality to conduct the feasibility studies and prepare the investment project in frame of its Technical Assistance facility. We are happy to be part of this investment that was prepared for financing by the VIPA professionals,” says Lada Strelnikova, Lead Investment Manager of the eeef.
The main objective of TIPS is to promote investments that can help reduce the demand for energy resources and increase energy efficiency, thereby reducing greenhouse gas emissions. This can range from upgrading of technological processes and equipment for energy savings to investments in the modernisation of buildings, retrofitting of lighting, advanced heating, cooling and air conditioning systems, solar power plants, etc. The platform finances up to 80% of the project investment value for a period of up to 10 years.