Lithuania. AB Lietuvos paštas
| Date of agreement: | 11 Dec 2018 |
|---|---|
| Country: | Lithuania |
| Customer: | AB Lietuvos paštas |
| Amount in EUR: | EUR 17.5 million |
| Maturity: | 10 years |
| NACE sector / loan type: | Post and telecommunications |
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 72%
NEB category: Energy efficiency
Amount disbursed: EUR 12.5 million
Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds
Project
The loan has been provided to finance the construction of a new centralized sorting facility in Vilnius for AB Lietuvos Pastas (LP), the Lithuanian postal service, as well as for the renewal of the organisation’s vehicle fleet and the development of the network of self-service parcel terminals.
The new parcel sorting facility in Vilnius will allow for the automation of most of the sorting process and centralise operations in one location. At present, LP has more than 150 sorting locations across the country. Manual sorting leads to bottlenecks in the process during peak delivery seasons. LP is predicting a twofold increase in parcel volumes by 2022.
As part of the project, LP will also renew its vehicle fleet. The company is planning to purchase a number of electric vehicles, which will mainly operate between Vilnius airport and the new sorting centre.
In addition, the network of self-service parcel terminals in the country will be expanded.
Lietuvos Pastas is a state-controlled public limited liability company and runs the widest network of postal access points in Lithuania. Lietuvos Pastas offers postal, logistics and financial intermediation services.
Fulfilment of NIB's mandate
Productivity:
The investment programme will have notable direct effects on the company, and improve both its productivity and output capacity. After the automation of sorting operations, LP will be able to sort up to 70 million parcels per year, which is significantly higher than the company’s current capacity. The letter-sorting capacity will increase from 2,000 letters an hour to 40,000. Well-functioning postal services are an essential pre-requisite for the overall efficiency of the economy; therefore, the project will have positive effects on the overall market efficiency in Lithuania and facilitate further growth in e-commerce.
Environment:
The new, automated sorting centre in Vilnius will replace the old, manual sorting centre. The new facility will be heated by electricity. It will be connected to district heating, and photovoltaic cells will be installed on the roof. The aim is to cover 20% of electricity demand with renewable energy.
Sustainability summary
The project is not expected to have any significant negative envionrmental or social impacts. The designed energy performance of the new logistics centre in Vilnius complies with the requirements of the Lithuanian Building Code. No soil contamination was identified. The land lease agreement is in place. During the construction phase, the responsibility for monitoring and managing the environmental and safety issues is transferred to the main contractor.
