The EBRD is considering extending a loan of up to EUR 8.0 million to VilniusLux UAB. The loan proceeds will be used to co-finance the rehabilitation and improvement of the municipal street lighting system of the City of Vilnius, Lithuania. (the ‘project’).
The principal investment will comprise the replacement of existing street, pedestrian crossing and tunnel light fixtures with new light emitting diodes (LED) and the implementation of a new remote control and adjustment system. The project will improve the quality of the street lighting in Vilnius while reducing the amount of consumed electricity.
Transition impact will derive from the use of a private company to install, operate and guarantee the installation of a street lighting system for a municipality using best available technology. The transaction is expected to have significant demonstration effect in the region both for the PPP of the project and for the technology deployed. There will be potential for the transfer of skills and knowledge as the transaction is implemented and monitored by the city. In addition, the expected reduction in electricity consumption will result in reduced cost for the city.
VilniusLux UAB, a special purpose company established by the consortium selected as the preferred bidder in an open tender. The consortium comprises Gemmo SpA (Italy) and VSLS UAB (Estonia).
Up to EUR 8.0 million for the rehabilitation and upgrade of street, pedestrian crossing and tunnel lights and the implementation of a new remote control and adjustment system.
The total project will be EUR 26.52 million and is intended to be co-financed with an equity contribution from the sponsor consortium and co-financing from the Nordic Investment Bank and Den Norske Bank. Potential technical co-operation support is not included in this estimate.
The proposed project has been categorised B in accordance with the 2008 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.
The environmental and social due diligence for the project, which is ongoing with EBRD TC funds, includes an environmental and social audit to assess the client’s management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the client’s ability to carry out the project in compliance with the Bank’s Performance Requirements.
An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism. Information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.
This PSD will be updated when the results of due diligence are known.
Financial, environmental and social due diligence will be carried out for the proposed project. This technical co-operation will be funded by VilniusLux or from the EBRD’s internal resources.
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