Lithuania. City of Vilnius

The EUR 8.5 million loan facility has been provided for financing an annual municipal investment programme, including street reconstruction, upgrading infrastructure for sludge and wastewater treatment, as well as improving energy efficiency in public buildings.

The reconstruction of a 1.1-kilometre stretch of the Gelezinio Vilko street includes the construction of an overhead road over the street, levelling of the street coat surface, replacement of traffic signs and street lighting, construction of cycle and pedestrian paths and reconstruction of the rain water drainage. The project will help reduce traffic congestion in one of the business districts of Vilnius. The total project costs of EUR 9 million are being financed with an EU grant, a NIB loan, totalling EUR 1.2 million, as part of a loan facility to the city of Vilnius agreed in 2011, as well as from the state and municipal budgets. The new NIB loan for this project will amount to EUR 1 million.

The sludge treatment project includes the thickening, digestion, dewatering and drying of sludge as well as the utilisation of the produced biogas in a combined heat and power station. The project costs of EUR 60 million are being financed with NIB loans, totalling EUR 18 million, to the municipal water utility Vilniaus vandenys disbursed in 2008 and as part of a loan facility to the city of Vilnius disbursed in 2010, as well as from the EU Cohesion Fund, the state and municipal budgets and by the municipal water utility company. The new NIB loan for this project will amount to EUR 1 million.

The rehabilitation and extension of the Vilnius water supply and sewage treatment infrastructure includes the construction of networks for water supply and wastewater management in newly developed residential areas. The total project costs of EUR 15 million are being financed from the EU structural fund, the state and municipal budgets, by the municipal water utility company, and a new NIB loan totalling EUR 1.5 million.

The renovation of schools, clinics and other public buildings aims to improve energy efficiency in the city. The total area to be renovated is around 260,000 square metres. The project is expected to reduce the total annual use of energy for the buildings by 23 GWh. The project costs of EUR 52 million are already being co-financed with NIB loans to the city of Vilnius provided in 2010 and 2011 and totalling EUR 8 million. The new NIB loan for this project will amount to EUR 5 million.

The upgrade of an important city throughput, Gelezinio Vilko, in accordance with EU quality standards will increase the effectiveness, capacity and safety of traffic in the city centre of Vilnius, which will result in a reduction of costs and travel duration.

The sludge treatment project, apart from its obvious environmental merits, will involve the development of the municipal water utility company’s business process in that the company expands its activities into the energy generating sector.

The modernisation and extension of the water supply networks will contribute to the strategic objective of providing at least 95% of the city inhabitants with access to water supply and wastewater treatment by 2015 (in 2008, 74% had access drinking water and 63% to wastewater treatment services). Beyond improving human health, better access to water supply provides productivity gains and well-being.

The energy efficiency project will result in improved physical facilities, reduced heating costs and higher quality of services. The impact of energy savings are expected to be 20–50% per square metre, implying a more efficient use of municipal resources.

The street reconstruction project will improve traffic safety and increase traffic and noise levels. A noise mitigation plan and mitigation measures have been developed.

The upgrade of the sludge treatment process will be performed in accordance with NIB’s sustainability policy and guidelines. The project is considered as an environmental investment, because it will help reduce greenhouse gas emissions and odours.

The development of the municipal water and waste water networks will reduce direct wastewater discharges into the environment. The negative environmental aspects are considered minor and are mainly related to the construction phase.

The renovation of public buildings is expected to reduce the use of energy for the buildings. The municipality-owned real-estate development company UAB Vilniaus vystymo kompanija has an environmental management system certified in accordance with ISO 14001. The project follows the EU’s directive on the energy performance of buildings.