Lithuania. AB Lietuvos gelezinkeliai

Date of agreement:12 Jun 2012
Customer:AB Lietuvos gelezinkeliai
Amount in EUR:EUR 34 million
Maturity:10 years
NACE sector / loan type:Land transport: transport via pipelines

This loan contributes to climate change mitigation: 100%


The EUR 34 million loan has been provided for an infrastructure investment programme including the renewal and modernisation of parts of Trans-European rail corridors: Kiev-Minsk-Vilnius-Klaipeda, Kaunas-Kaliningrad, and Tallinn-Riga-Siauliai-Taurage-Kaliningrad.

In particular, the funds will be allocated for the construction and modernisation of a number of stretches and bypasses at Vilnius, Kaunas and Klaipeda; the modernisation of railway station equipment and establishment of a traffic control centre in the country’s second largest city Kaunas; the reconstruction of the station yard and sound deadening walls in Klaipeda; the modernisation of the railway junction in the harbour of Klaipeda.

AB Lietuvos gelezinkeliai (Lithuanian Railways) is a state-owned operator of Lithuania’s railway infrastructure, passenger transportation and cargo freight. The main commodities transported on rail through Lithuania are oil and its products as well as mineral fertilisers.

Fulfilment of NIB's mandate

An up-to-date railway infrastructure is essential for the development of transit traffic to Klaipeda harbour from Russia, Belarus and Ukraine. The implementation of the planned projects will result in improved cargo capacity, higher speed and volumes of transit through Lithuania. An efficiently functioning railroad network would help decrease the need for road transport, which has a significant negative impact on the environment.

Sustainability summary

The main environmental issues related to the implementation of the railroad infrastructure investment programme include impact on culture heritages and sensitive areas, the generation of noise, contamination and the drainage of surface water.

The subprojects are located in areas which belong to the Lithuanian state and are assigned for Lithuanian Railways’ operation. No private land is required for the projects. None of the projects are located in sensitive areas. Several culture heritage sites will be impacted by the projects but necessary precautions are to be taken. Noise reduction measures designed to reduce the noise level to acceptable levels will be constructed. No plan for following up the efficiency of the noise mitigation measures has been developed. Such a plan will be a condition for the loan.

Station yards which are exposed to a risk of leakages of chemicals should be equipped with water collection systems. During the reconstruction of the station yards the condition of the collection system will be surveyed and refurbished or replaced with a new one when needed.

None of the subprojects sections are electrified. If the intensity of railway transportation increases at the expense of reduced road traffic, the project reduces the emissions of greenhouse gases.

Press release

NIB-funded investments to help boost railway transit in Lithuania

Press release

NIB finansuojamos investicijos padės padidinti geležinkelio tranzito apimtis Lietuvoje