Lithuania Railways (LG) Corridor IX Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 7654

Status Complete

Location

Lithuania

Business Sector

Transport

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 7654

Status Complete

Location

Lithuania

Business Sector

Transport

Notice Type

State

Environmental Category

Approval Date

30 May 2001

Disclosure date

11 May 2000

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The key components of this railway project are: (i) renewal of approximately 155 km of main-line railway track on Corridor IX; (ii) creation and implementation of a comprehensive restructuring plan of the rail sector in Lithuania.

The key project objectives are to:

retain and improve the competitiveness of Lithuania’s main freight transit routes from the CIS to the port of Klaipeda and to Kaliningrad;
support the development of the Lithuanian rail sector into a commercially focused industry, organised according to European Union directives and established on a sound financial basis.

Transition Impact

The transition impact is very high as the project is expected to:

enhance western Europe–Russia transit trade;
promote intermodal competition for the provision of cost-effective freight transport;
improve LG efficiency by introducing greater competition with neighbouring railways for transit freight traffic; and
foster private sector involvement.

The Client

Lietuvos Gelezinkeliai (LG – Lithuanian Railways) is a joint-stock company fully owned by the Republic of Lithuania. LG’s core activities are infrastructure management and freight/passenger transport. LG operates a network of about 2,000 km and employs approximately 16,000 staff.

EBRD Finance

Loan financing totalling US$ 54 million. The project was structured in cooperation with the European Union’s Instrument for Structural Policies for Pre-Accession (ISPA) fund, which is contemplating a financial contribution of US$ 41 million in parallel financing. No co-financing is expected from commercial banks or export credit agencies.

Project Cost

US$ 54 million (€ 57 million).

Environmental Impact

The project was screened B/0 requiring an environmental analysis. The analysis was carried out by international consultants appointed by the Bank and it revealed that there are no serious environmental issues associated with this project. Overall the track replacement programme is likely to have a positive environmental impact by reducing the incidence of derailments, and hence potential contamination, particularly from oil based compounds. An Environmental Action Plan (EAP) has been agreed and will be covenanted within the Loan agreement. A member of the Bank's Technical Cooperation fund financed Project Implementation Unit will be responsible for ensuring the timely implementation of the EAP.

Technical Cooperation

The project will benefit from EU Phare TC funding.

Transition impact

ETI Score:100

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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