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Lithuania to generate up to EUR 500 million for energy efficiency with EIB

Date

2016 10 05

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From left: Romualdo Massa Bernucci, EIB Deputy Director General, Finance Minister Rasa Budbergytė, Minister of Environment Kęstutis Trečiokas

European Investment Bank (EIB) to attract private finance into residential energy efficiency modernisation via a guarantee scheme funded by the Lithuanian Government. 

The Lithuanian Leveraged Fund, a guarantee scheme funded with EUR 100 million of EU Structural and Investment Funds and national resources, comes in support of energy efficiency investments to cut energy bills in thousands of Lithuanian homes. The structure will maximise the funds available for the “Multi-apartment Building Modernisation Programme”, a key government priority with national and municipal backing.

The fund will enable banks to increase their lending under the terms of the Modernisation Programme, thus boosting its scale and outreach across Lithuania. Rolling out the guarantee is expected to generate bank lending of up to EUR 500 million for modernisation loans, enabling the modernisation of up to 32,500 apartments in nearly 1,500 multi-apartment buildings, until 2023. This will multiply the available public resources five times in a period of growing demand for energy efficiency investments in residential housing across the country. 

“With the signature of the Leveraged Fund agreement we continue to expand on the successful JESSICA programme and take a big step forward in terms of effectively using EU funds to attract private resources for renovation of multi-apartment buildings in Lithuania.” said Romualdo Massa Bernucci, EIB Deputy Director General, “The Leveraged Fund will enable tens of thousands of apartment owners to refurbish their houses and enjoy significant energy savings. The success of this programme will have a substantial positive effect on the sustainable economic growth in the country and can improve the lives of many Lithuanians.”                                                                                                 

Finance Minister Rasa Budbergytė added: “By establishing this risk-sharing fund we encourage an active contribution of private capital towards the renovation of multi-apartment buildings, part of which will be guaranteed by EU funds. We believe that this financial instrument will accelerate renovation works and help achieve higher efficiency. In its own right this is good news for the construction sector, which will have more work, as well as for the people, who will be able to enjoy their renovated warmer homes, while saving money on heating.”

Minister of Environment Kęstutis Trečiokas said: “Renovation is an area that yields stunning results and its positive changes can be felt by almost everyone. After refurbishing their houses, hundreds of thousands of Lithuanian residents enjoy nicer surroundings and, I have no doubt, are happier. I am very glad that along with the reduction in energy consumption in the renovated houses, CO2 emissions have decreased significantly as well. In the renovated buildings, more than 40% of the energy used for heating is saved, which is yet another step towards the preservation of the environment and a rational consumption of natural resources.”

Background information:

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The leveraged fund is the latest development in the long-standing cooperation between EIB and the Lithuanian Government in the area of residential energy efficiency. Apart from this fund, the EIB manages the EUR 150 million Jessica II Fund, under which 3,300 apartments in 133 different buildings have been renovated since its establishment in May 2015, with another 9,300 apartments already undergoing refurbishment. Prior to Jessica II, some 1,055 buildings, totalling around 29,500 apartments, had been financed under the EIB-managed JESSICA Holding Fund Lithuania (JESSICA I).  

Press contacts:

EIB: Tim Smit, t.smit@eib.org, Tel.: +352 691 286423

Lithuanian Ministry of Finance: Jonas Balkevičius, jonas.balkevicius@finmin.lt, Tel.: +370 5 2199303, Justina Žeižytė, justina.zeizyte@finmin.lt, Tel.: +370 5 2199378

Lithuanian Ministry of Environment: Brigita Stankevičiutė, brigita.stankeviciute@am.lt,  Tel.: +370 706 63556.