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NIB Loan to help increase energy efficiency of buildings in Lithuania

Date

2009 12 09

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Vilnius, December 9. The Ministry of Finance has signed the agreement with the Nordic Investment Bank (NIB) for the long-term loan of EUR 100 million (LTL 345 million) to Lithuania.

This agreement will secure funds for renovation of public buildings and apartment houses (built in Lithuania before 1992) in order to reduce the consumption of energy used for heating. According to the experts, the country uses about 40% of all energy consumed in Lithuania is used for heating and the building sector has the largest potential of reducing its energy needs when compared to the other sectors of the Lithuanian economy.

The NIB loan will be used for upgrading public buildings at the universities in the country’s three largest cities—Vilnius, Kaunas and Klaipėda—as well as in high schools, libraries, district courts, theatres, museums, hospitals, clinics and other. The project envisages the reconstruction and renovation of 39 buildings (included in Public Investment Programme) with a total area of 230 thousand square metres. The NIB financing will also be used for increasing the energy efficiency of more than 300 private apartment buildings with a total area of 0.9 million square metres.

Lithuania co-operates with the international financial institutions, such as Nordic Investment Bank, aiming at the implementation of important investment projects. These institutions grant loans for the country for financing the investment projects of lasting value, the loan conditions (particularly the terms and interest rates) are more favourable than in the market.

Lithuania will repay the loan to the NIB within the period of 20 years, the loan will be granted in tranches. This year it is planned to disburse about EUR 30 million (LTL 103,5 million), the amount will be transferred to the State Treasury in the nearest future. The Ministry of Finance will distribute the funds to institutions and organizations, implementing projects according to Public Investment and Housing Programmes. 

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The Nordic Investment Bank is the common international financial institution of the eight Nordic and Baltic countries, established in 1975. The Bank provides long-term financing to the energy, environmental, transport, logistics and communications, and innovation sectors for projects that strengthen competitiveness and save the environment. Lithuania is the member of NIB from 2005.

 

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