VIPA signs the largest loan agreement for a water management project: 1 456 residents will be connected to networks
On 29 March 2022, the Public Investment Development Agency (VIPA) signed a water management project loan agreement with UAB Pabradės komunalinis ūkis. This is the largest loan for a water management project financed from VIPA capital. Having implemented the project, the plan is to connect 876 residents of the Pabradė agglomeration and the village of Cirkliškis of the Švenčionys agglomeration to wastewater networks, and another 580 residents – to water supply networks.
The total value of the project is EUR 5.7 million, of which EUR 1.96 million is a part of the repayable subsidy, EUR 1.99 million is a part of the Water Management Fund, and EUR 1.75 million is a VIPA capital loan.
“When the need for investments is higher than the Water Management Fund’s connection fee, additional financing from VIPA’s capital may be disbursed. This is very convenient for project promoters, as all payments are made on a one-stop-shop basis, thus reducing the administrative burden,” says Vaida Lauruševičienė, Head of Regional Development Department at VIPA.
The new agreement is the largest, but not the only one
Currently, yet another water management project is being implemented in Švenčionys District Municipality. Wastewater collection and drinking water supply networks are being built in the Pabradė urban agglomeration. 458 residents will be able to use the new infrastructure.
A total of 36 water supply and wastewater network development projects are being implemented across Lithuania, 5 of which with additional funding from VIPA. The major Lithuanian cities implement the largest projects amounting to several million euros each. They focus on emerging new neighbourhoods and garden communities.
UAB Plungės vandenys was the first in Lithuania to implement the Water Management Fund project “Development of wastewater collection networks in Plungė”. Another 130 residents will be able to use the water supply and wastewater networks in Plungė.
Water management projects are financed by combining different sources of funding
Lithuanian water supply companies have been invited to apply for funding since 2019. On 1 January 2021, a third call for applications was launched. The call received significant attention, with applicants filing more applications than the funding planned for them.
The Water Management Fund was established by VIPA signing a tripartite agreement with the Ministry of Finance and the Ministry of Environment, allocating thereto EUR 30 million from the Cohesion Fund to provide soft loans for the reconstruction and expansion of drinking water networks and the reconstruction of wastewater collection networks.
Another EUR 26.4 million was allocated from the “Development of wastewater collection networks” facility under the Operational Programme for the European Union Funds’ Investments for repayable subsidies, which can only be used to finance the development of wastewater collection networks.
