Environmental loan to facilitate sludge treatment in Vilnius

A new long-term environmental loan issued by NIB in Lithuania will help introduce a modern sludge treatment process at a wastewater treatment plant in the country’s capital Vilnius.

On 22 December, NIB and the municipal water utility UAB Vilniaus vandenys sealed a EUR 10.3 million loan agreement with a maturity of 18 years. The Lithuanian utility company will use the financing for the construction of a sludge treatment facility in order to halve the volume of sludge stored at the wastewater treatment plant and reduce odour.

The facility will digest the sludge, producing biogas, which will then be utilised in a combined heat and power plant. The sludge processing will also produce granules for use in covering landfill areas, as fertiliser, or as fuel for incineration plants.

“It is important to continue with environmental investments also during difficult times. The project of Vilniaus vandenys is a good example of that. Treating and recycling sludge will not only help improve the environment in Vilnius, but also cut hazardous discharges to rivers leading to the Baltic Sea, which is a priority for NIB and important for the region as a whole,” comments Johnny Åkerholm, NIB President and CEO.

Of the NIB-financed environmental investment, 80% qualifies under the Bank’s Climate Change, Energy Efficiency and Renewable Energy (CLEERE) and 20% under the Baltic Sea Environment Financing (BASE) lending facilities.

UAB Vilniaus Vandenys is a water utility company owned by four municipalities, including the city of Vilnius. The project will cost EUR 60 million overall and is being co-financed by the EU Cohesion Fund, the City of Vilnius, from the company’s own budget and with the NIB loan.

NIB is a multilateral financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact

Mr Vilius Girkontas, Manager Lending, at +358 10 618 0240,

Mr Dimitrijs Alehins, Communications Specialist, at +358 10 618 0296,