VIPA Energy Efficiency Structured Loan

Location:

Lithuania

Project number:

48417

Business sector:

Municipal and environmental infrastructure

Notice type:

Private

Environmental category:

B

Target board date:

22 Mar 2017

Status:

Repaying

PSD disclosed:

20 May 2016

Translated version of this PSD: Lithuanian

Project Description

Extending a loan of up to EUR 50.0 million 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").

Project Objectives

The Project will help conserve energy, reduce carbon emissions, and encourage the use of energy performance contracts to bring energy efficiency gains in residential apartment buildings.

Transition Impact

The expected transition impact of the Project will be derived from two main sources:

  • Setting Standards: The project will reduce wasted energy and CO2 emissions by approximately 40 per cent. The CO2 savings potential will be reviewed and confirmed during due diligence.
     
  • Demonstration Effect of New Products and Processes: The project will support the use of performance based contracting to implement energy efficiency improvements in apartment buildings.

Client Information

LITHUANIAN PUBLIC INVESTMENT DEVELOPMENT AGENCY

VIPA will be the borrower and act as an aggregator to channel and manage sub-loans to beneficiaries.

EBRD Finance Summary

EUR 50,000,000.00

Up to EUR 50.0 million for energy efficiency investments.

Total Project Cost

EUR 124,000,000.00

Total project cost will be EUR 124.0 million. In addition to the proposed EBRD loan, a further EUR 4.0 million of investments are being financed with European Union funds on-lent by VIPA.

Environmental and Social Summary

The project has been categorised B. Environmental and Social Due Diligence ("ESDD") will be carried out by external consultants and will include a site visit.

This project will have significant benefits in terms of improving energy efficiency, lowering emissions and enhancing the quality of apartment buildings in Lithuania.

The ESDD will focus on developing an appropriate management plan for avoiding or mitigating otential temporary disruptions and nuisance caused by the project construction and implementation works as well as for appropriate disclosure of information on the planned rehabilitation works to the afected residents.

An Environmental and Social Action Plan ("ESAP") will be developed to ensure contractors will adhere to and adopt good construction practices and environmental, health and safety and social tandards in line with the Bank's PRs.

This PSD will be updated once the ESDD is completed to summarise the outcomes.

Technical Cooperation

Pre-signing

Full financial, technical and environmental and social due diligence will be prepared under the framework for Municipal Services for Project Preparation in the EBRD Advanced Transition ountries and will be financed by the Government of the Slovak Republic with a budget of up to EUR 5,000.

Post signing

Development of a Legal and Regulatory Framework for Securitisation for Lithuania to assist the inistry of Finance in the development of a legal framework for securitisation. The budget of UR 150,000 is proposed to be financed by an international donor and the Ministry of Finance of Lthuania.

Company Contact Information

Gvidas Darguzas
g.darguzas@vipa.lt
+370 64695979
+37052034986
http://vipa.lt/en/
Gedimino av. 18/Jogailos str. 2, LT-01103 Vilnius, Lithuania.

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.