Provision of a loan of up to EUR 135.0 million, of which EUR 67.5 million is expected to be syndicated, to the Lithuanian Public Investment Development Agency ("VIPA"), an agency of the Ministry of Finance of Lithuania, to finance demand side energy efficiency investments in residential apartment buildings (the "project"). The project will help conserve energy, reduce carbon emissions and encourage the use of energy performance practices to generate energy efficiency gains at residential apartment buildings.
The project supports an innovative approach to accelerate the pace of renovation of existing buildings through a combination of long term debt financing, incentives, technical assistance and support for low income households.
ETI score: 60
Green: The project promotes the green transition quality through heat and electricity savings as a result of comprehensive residential buildings refurbishment. The proposed project is expected to improve the energy performance of old residential buildings by a minimum of 40 per cent compared to the baseline and comply with "Class C" energy performance. The project also supports SMEs involved in buildings renovations, which are severely affected by the Covid-19 pandemic by offering revenue generating opportunities.
SPECIAL ACCOUNT FOR PUBLIC INVESTMENT DEVELOPMENT AGENCY PLLC
VIPA is a national promotial institution set up by the Ministry of Finance of Lithuania in 2012. Among other energy efficiency programmes, VIPA manages grant and long-term debt financing, which are on-lent to apartment buildings' management associations to finance energy efficiency renovation works.
EBRD Finance Summary
Total Project Cost
The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions. Such financing is necessary to structure the project. Also, the EBRD offers a tenor above the market average and necessary to structure the project, and a large volume instrument that fills a market funding gap and is required to structure the project. The EBRD's involvement in the second consecutive project with VIPA is additional as it builds on the experience and achievements of the previous project.
Environmental and Social Summary
Categorised B (ESP 2019), and Low E&S Risk. VIPA is an existing Client of the Bank, which acts as a financial intermediary that on-lends funds to apartment building administrators to finance EE measures and renovation of apartment buildings on behalf of apartment owners. Environmental and Social Due Diligence was undertaken in 2017 by external consultants in relation to the previous loan and an ESAP was agreed. The Client has been reporting satisfactorily on its E&S performance since then, confirming that the ESAP is being implemented according to schedule. For this Project, ESDD will rely on the previous due diligence undertaken, and complement and update it through discussions with the Client. The ESAP will be updated to ensure the building renovation works continue to comply with EBRD's PRs.
Technical Cooperation and Grant Financing
Company Contact Information
Gedimino av. 18/Jogailos str. 2, LT-01103 Vilnius, Lithuania
PSD last updated
13 May 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.