All agreed loans

Lithuania. City of Kaunas

Date of agreement: 15 Jul 2019
Country: Lithuania
Customer: City of Kaunas
Amount in EUR: EUR 30 million
Maturity: 15 years
Business area: Infrastructure, transportation and telecom

Project

The uncommitted loan facility gives the City of Kaunas an option to use NIB funding for its urban development programme for the period of 2018–2021. The programme includes the modernization of schools, the construction and reconstruction of sports facilities and the upgrading of streets.

Projects within the educational sector envisage the renovations of Valdas Adamkus Gymnasium and Kaunas Special Purpose School for children with special needs. Renewal of the facilities aims to reduce energy consumption, increase the capacity and to provide better conditions for education in general.

The investments into sport facilities include the construction of a new ice arena and the renovation of the Kaunas Sports Hall. The new arena will accommodate two ice rinks as well as a multifunctional sports hall, providing a high quality winter sports infrastructure. Furthermore, the renovation of the Kaunas Sports Hall will increase its usage for sports and cultural events.

The road infrastructure projects entail the reconstruction of the main pedestrian street, Laisves Alley, and the upgrading of streets in the Aleksotas residential area. The investments in Laisves Alley will provide wider cycle lanes and improved rainwater drainage systems. Meanwhile, infrastructure developments in Aleksotas include the reconstruction of roads, new cycle lanes and sidewalks as well as the installation of better rainwater drainage and LED lighting systems.

The total investments related to the development programme add up to EUR 61.6 million.

Kaunas is the second largest city in Lithuania, with a population of approximately 290,000 residents. Located in the geographical centre of the country, the municipality is an educational, industrial and transportation hub.

Fulfilment of NIB's mandate

Productivity:

The refurbishment of schools and Kaunas Sports Hall will result in energy efficiency gains as well as improved conditions for education. The renovation of Valdas Adamkus Gymnasium envisages the enlargement of the premises and includes the building of a new laboratory, music studio and modernized technology and sport facilities. This will increase the gymnasium’s capacity by 70 pupils, and will allow for improvements in the teaching programme.

The modernization of Kaunas Special Purpose School will improve the quality of life of children with special needs. The refurbishment will provide better conditions for education and treatment.

The sports hall renovation will increase the usability of the facility. It is planned that most of the usage will be dedicated to non-formal education purposes.

Expected impacts related to the investment:

  • 70 additional places for pupils at schools;
  • 76% of the total usage is expected to be allocated to non-formal education activities at Kaunas Sports Hall;
  • 150 thousand clients are expected to visit the ice rink every year.

Environment:

Valdas Adamkus Gymnasium refurbishment includes thermal insulation, modernized heating, water supply and sewerage systems, better ventilation and other energy saving measures. The project is expected to result in 44% decrease in use of energy.

The modernization of the special purpose school is predicted to reduce the annual energy use by 43%.

Moreover, while Kaunas Sports Hall renovation will enlarge its total area, the energy savings related to the project is estimated to amount to 27%.

Furthermore, the reconstruction of streets includes the widening of bicycle lanes, thus an increase in cycling traffic can be expected.

Expected impacts related to the investment:

  • Energy savings of approximately 44% at Valdas Adamkus Gymnasium, 43% at Kaunas Special Purpose School and 27% at Kaunas Sports Hall;
  • Improved infrastructure for cycling.

Sustainability summary

The projects related to the investment do not pose any significant sustainability concerns.