All agreed loans

Lithuania. AB Lietuvos gelezinkeliai

Date of loan: 9 Jun 2009
Country: Lithuania
Customer: AB Lietuvos gelezinkeliai
Amount in EUR: EUR 15 million
Maturity: 10 years
NACE sector / loan type: Land transport: transport via pipelines
Business area: Infrastructure, transportation and telecom

Environmental effect

This loan contributes to climate change mitigation: 100%

Project

The 10-year-maturity loan totalling EUR 15 million has been provided for financing the modernisation of the Lithuanian segments of the Trans-European rail corridors connecting Ukraine and Belarus to Baltic harbours as well as the Tallinn-Riga-Kaliningrad corridor.

The company's investment programme, to be carried out in 2009-2011, aims at bringing the railway infrastructure into line with EU standard, with focus on improving safety and reliability of passenger and cargo traffic.

The investment programme includes the renovation of a rail tunnel in Kaunas, the establishment of a traffic control centre in Vilnius, as well as the modernisation of the signalling, telecommunications, diagnostics and power supply systems. The company's analogue telecommunications will be replaced with modern digital technologies.

Lietuvos geležinkeliai (Lithuanian Railways) is a fully state-owned company operating passenger and cargo freight in Lithuania. The company maintains all of Lithuania's 1,766 kilometres of railways and 109 ailway stations.

Sustainability summary

The railway upgrading project considered for NIB financing has the potential to be carried out in accordance with the Bank's environmental policy and guidelines. The main environmental issues include land issues, impacts on sensitive areas, contamination, waste management and drainage of surface water. The project is not expected to have negative impacts on sensitive areas. The contaminated soil and hazardous waste identified within the project will be taken care of by a specialised soil and waste remediation company. Drained surface water will be collected and treated.