State on-lent loan to state enterprise “Turto bankas” for renovation of public buildings
On Wednesday, the Government approved that SE “Turto bankas” should be granted a state on-lent loan in the amount of up to EUR 57.5 million from the funds borrowed from the NIB on behalf of the state. The loan is to finance the investment plan for the renovation of centrally managed administrative state immovable property. It is planned that the loan funds will be used in 2023-2026.
"Lithuania pays great attention to increasing the energy efficiency of state-owned buildings. By using this bank loan, not only will the buildings be modernized faster, but also their maintenance costs will be significantly reduced, and better working conditions will be ensured for the employees," said Chancellor of the Ministry of Finance Remigijus Skilandis.
44 state-owned buildings will be modernized with the funds of the twenty-year loan. The renovation of the buildings of the Ministry of Social Security and Labour, the Customs Department, the State Plant Service is already coming to an end or has been completed, the premises of the Ministry of the Environment, Economy and Innovation, and Energy, the Supreme Court of Lithuania, the territorial units of the Lithuanian Employment Service, the State Tax Inspectorate, the Migration Department, the Police and other state institutions are planned to be renovated. Also, the construction of the new buildings of the court located at J. Kairiūkščio Str. in Vilnius and in Klaipėda city, and adaptation of research institute buildings located at Goštauto Str. 11, Vilnius, for administrative purposesare planned.
SE “Turto bankas” implements the state immovable property renovation investment plan. The goal of this plan is to reduce the portfolio of centrally managed administrative state immovable property from 689.5 thousand sq. metres to 470.4 thousand sq. meters in 10 years and to increase the proportion of buildings in good condition in the property portfolio from 55 % to at least 85 %. It is planned that after updating the portfolio of centrally managed administrative state immovable property and abandoning redundant buildings, the area per workplace will decrease, and the annual maintenance costs (utility costs) of this property will decrease by about EUR 7.3 million.
SE “Turto bankas” needs a EUR 115 million loan to implement the investment plan. It is tentatively planned that the remaining part of the loan of EUR 57.5 million would be provided by the Council of Europe Development Bank in 2024.
Additional information:
NIB is an international financial institution and is owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank finances private and public projects in and outside member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
Last updated: 06-12-2023
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