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EBRD helps improve urban traffic in Vilnius
The European Bank for Reconstruction and Development is lending the Lithuanian
capital Vilnius €7 million to upgrade Konstitucijos Prospektas, formerly known
as Ukmerges Street. Refurbishment of the street, part of the central ring
around the Old Town, will complement various developments under way nearby,
including a new City Hall, a major hotel renovation and an entertainment
centre.
Thomas Maier, the EBRD's Director for Municipal and Environmental
Infrastructure, said the various developments are providing a major boost to
business in Lithuania. With approximately 15 per cent of the country's
population, the City is a major engine of the country's economy, generating
almost 30 per cent of its GDP.
The project foresees widening Konstitucijos Prospektas and building pedestrian
footpaths and bicycle tracks. It aims to help reduce congestion in and around
the City's historic old town and smooth traffic flow, reducing pollution. It
should also lead to further investments by the Bank and other financial
institutions in the City's infrastructure.
The project benefits from technical cooperation funds provided by Canada to
enable Vilnius to improve its capital budgeting procedures and identify new
sources of funding for infrastructure investments.
The loan is the EBRD's first to the City of Vilnius, although the Bank has
financed two transactions with the Kaunas Water Company to improve the
capital's water and wastewater systems.
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