3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||14 Dec 2015|
|Customer:||AB Lietuvos gelezinkeliai|
|Amount in EUR:||EUR 50 million|
|NACE sector / loan type:||Land transport|
|Business area:||Infrastructure, transportation and telecom|
This loan contributes to climate change mitigation: 100%
The loan has been provided for the modernisation of Trans-European rail corridors in Lithuania. The investment projects are co-financed from EU funds.
The company is investing in a European-gauge (1,435 mm) Rail Baltica railway line from the Lithuanian–Polish border via the city of Kaunas to the Lithuanian–Latvian border. The project also includes the deployment of the European railway traffic management system and the technical designing of the electrification of the section from the Lithuanian–Polish border to Kaunas.
The investments in the East–West corridor are related to the electrification of a stretch from the capital Vilnius to the Lithuanian–Belarusian border, Vilnius bypass and a stretch from Kasiadorys to Radviliskis, as well as the construction of the second track on several stretches as well as other infrastructural improvements with the aim to increase the capacity of the corridor.
AB Lietuvos gelezinkeliai (Lithuanian Railways) is a state-owned company that administers the public railway infrastructure and provides freight and passenger transportation services. Lithuania’s total railway network measures 1,767 kilometres. The main commodities transported on rail through Lithuania are oil and petroleum products as well as mineral fertilisers.
Competitiveness: The investments will improve the country’s main freight corridors. The company will benefit from lower operational costs and consumers from reduced travel times and improvements in operational efficiency. Freight transportation costs are of particular importance for the Baltic countries, where the rail transportation’s share of inland freight traffic is higher than in other European countries.
Environment: Railway transportation is far more environmentally efficient than most other modes of transport. Assuming that the added rail traffic replaces road transport, extensive reduction of greenhouse gases emissions is expected as a result of the project.
Key environmental issues connected with the subprojects include land issues, noise pollution, contamination and the drainage of surface water. NIB has concluded that AB Lietuvos gelezinkeliai has a reliable internal system for ensuring all necessary environmental and social measures are taken adequately.