The building of the Customs Department of Lithuania in Vilnius, which is part of the renovation programme. Image: Turto Bankas
26 Oct 2023
NIB finances Lithuania’s public building renovation programme
NIB and the Republic of Lithuania have signed a 20-year credit facility to co-finance the energy efficiency programme for public buildings during 2023–2026.
“As in the other Baltic countries, a large share of Lithuania’s public buildings was constructed before 1990, making them costly for both the climate and public finances. Through our lending, Lithuania can tap into its enormous potential to increase energy efficiency while reducing administrative costs,” says André Küüsvek, President & CEO at NIB.
“Lithuania has a strong focus on increasing the energy efficiency of state-owned buildings. Our goal is to have at least 85 percent of administrative building stock in good condition by 2030. By taking advantage of this bank loan, not only will the buildings be modernised faster, but their maintenance costs will also be significantly reduced,” says Minister of Finance of the Republic of Lithuania Gintarė Skaistė.
NIB’s long-term EUR 57.5 million financing will be used to refurbish 25 public buildings, such as the premises of the Lithuanian Employment Service, the State Plant Service, local State Tax Inspectorates, and other governmental institutions.
It is estimated that the investments will decrease the energy consumption of the renovated buildings by at least 30% annually, bringing both environmental and financial benefits. The energy class of the buildings included in the programme will also increase significantly – in most cases, jumping from class F or D to class B after the modernisation.
Moreover, the refurbishment will improve the work environment by ensuring better air quality, noise insulation and lighting conditions. The renovated premises will meet the latest safety and mobility requirements, thus also improving access to governmental services for the public.
This is already NIB’s third loan agreement for similar state-sponsored energy efficiency programmes in Lithuania. Furthermore, the Bank is financing the country’s multi-apartment building renovation with a recent loan to the SB Modernisation Fund.
The latest co-financed programme is part of Lithuania’s longer-term investment plan to refurbish the country’s public building stock. The plan is being implemented by Turto Bankas, a state-owned enterprise that centrally manages state real property for administrative purposes.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
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