Project Description
Provision of a secured loan of up to EUR 38.23 million to Vilniaus Viesasis Transportas ("VVT"), the municipally-owned transport company of the City of Vilnius. The loan benefits from a EUR 7.65 million concessional loan provided by TaiwanICDF, via the High-Impact Partnership for Climate Action. The proceeds of the loan will be used to finance the purchase of up to 91 battery / electricity powered trolleybuses to renew part of VVT's ageing fleet of 159 trolleybuses. With the Project serving as the City's "trigger" investment to become a Green City as part of the Green Cities Framework 2 - Extension 2, EBRD will support the City to develop a Green City Action Plan ("GCAP"), through which the City will identify and prioritise its most pressing environmental challenges, and develop targeted investment and policy actions to address them.
Project Objectives
By improving the quality and reliability of trolleybuses, the Project is expected to improve the attractiveness and increase the ridership of Vilnius' public transport, and therefore to encourage a modal shift towards low-emission, electric transport modes. The Project is expected to result in reduced emissions and enhanced energy efficiency.
The Project is part of a broader City programme to achieve sustainable mobility in Vilnius, which aims to make public transport the backbone of transport in Vilnius by ensuring quick and safe transport within the city and by increasing connectivity between the city and peripheral areas through public transport service.
Transition Impact
ETI score: 70
The Project is in line with the Green Cities Framework 2 ("GrCF2" or "Framework"), a strategic and multi-project approach framework targeting environmental issues in selected large cities in the Bank's countries of operation. The Transition Impact of the Project will therefore be derived from:
1) Green quality
The Project will enable VVT to purchase new battery / electricity-powered trolleybuses (with zero tailpipe emissions), replacing its ageing fleet. Modernization of VVT's fleet will improve the attractiveness of public transport, and promote a modal shift towards cleaner transportation and away from personal vehicles. The Project will also entail the development of a GCAP for the City of Vilnius, which will identify and address priority environmental challenges for the City.
2) Inclusive quality
The Project will promote standards of universal access of public transportation in the City, by offering modern, low entry vehicles that will ensure access to passengers with low mobility, e.g. people with disabilities, the elderly, passengers with care responsibilities. Additionally, trainings (including for women and youth) will be provided to promote equal opportunities in skills and employment in the City and to help the Client adapt to technical change and to the transition towards the green economy. These will include trainings to drivers and relevant staff on topics such as e-vehicle maintenance and operations, digital learning, and will therefore promote the development of green and digital skills in order to have a positive impact on human capital of the local population.
Client Information
VILNIAUS VIESASIS TRANSPORTAS JSC
Vilniaus Viesasis Transportas ("VVT") is the public transport operator of the City of Vilnius, 100% owned by the City.
EBRD Finance Summary
EUR 30,584,000.00
A secured senior loan of up to EUR 38.23 million to VVT. The loan benefits from a EUR 7.65 million concessional loan provided by TaiwanICDF, via the High-Impact Partnership for Climate Action.
Total Project Cost
EUR 58,358,300.00
Total project cost is EUR 58.36 million (incl. VAT). On top of EBRD financing, VVT will benefit from a EUR 10 million national grant.
Additionality
Financing structure: EBRD offers longer term financing that is not available in the market from commercial sources on reasonable terms and conditions while also funding the gap (without crowding out other sources or by complementing them).
Environmental and Social Summary
Category B under the 2019 ESP. The project (VVT Trolleybuses Fleet Renewal) is associated with the purchase of up to 91 battery / electricity powered trolleybuses i which have zero tailpipe emissions to renew Borrower's ageing vehicles to improve services in Vilnius, Lithuania. The Project aims to achieve sustainable mobility in Vilnius and is also expected to result in significant benefits in terms of GHG emissions reductions, eventually improving urban air quality and health of city dwellers thus the E&S impacts are expected to be limited and mainly positive. The Company also operates 412.7 km of trolleybuses routes. Currently, the company's fleet is composed of 654 vehicles, including 402 buses and 181 trolleybuses stored in 3 transport depots (one only for trolleybuses, one only for buses and one for both). The new trolleybuses will be operational by 2024/2025. The environmental and social issues associated with the project are readily assessed and mitigated. The Environmental and Social Due Diligence (ESDD) was undertaken internally through the ESDD questionnaire, online interviews with the Client, documentation review. It also included a review of current facilities of the company including the depots and washing stations, examination of the Company's existing practices on environmental, social, health and safety aspects and local permitting. The ESDD focuses on the identified key environmental and social risks and impacts, including on contractors' and supply chain management system. During the tendering process the Bank's standard requirements on forced and child labour risks will be applied (EBRD's Standard Procurement Documents), which are considered to be sufficient to manage any supply chain risks. The Client will develop and adopt supply chain management system which will be proportionate to the risks. Based on the ESDD, an Environmental and Social Action Plan (ESAP) was developed. It will be further agreed with the Client and the Lenders to ensure that the Project is structured to comply with EBRD PRs and good industry practices. The ESAP includes institutional strengthening and mitigation measures addressing the issues and risks related to Environmental & Social Management and Occupational Health & Safety Systems (ESMS&OHSS), including development of E&S management and monitoring plans; traffic and road safety management; stakeholders' engagement and internal and external grievance mechanism, including on gender-based violence and harassment (GBVH).
Technical Cooperation and Grant Financing
Green City Action Plan: support to the City for the development of a GCAP to prioritise the City's most pressing environmental challenges and to define the investments and policy actions to address them.
Company Contact Information
Rymvydas Totoraitis
rimvydas.totoraitis@vilniausvt.lt
+370 (85) 2394 783
www.vilniausviesasistransportas.lt
UAB "Vilniaus viesasis transportas"
Zolyno g. 15, 10209 Vilnius
PSD last updated
12 Apr 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
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Tel: +44 20 7338 6794
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General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
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 compliance@ebrd.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 more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
