VILNIUS WATER AND SANITATION II

The project concerns the co-financing of part of the 2025-2028 investment programme of Vilniaus vandenys UAB, the water company for Vilnius and surrounding communities in Lithuania. The investments mainly include the extension and rehabilitation of water supply and wastewater collection and treatment infrastructure, as well as the digitalisation, upgrading and extension of the monitoring system.

The aim is to provide social benefits (improved water and wastewater services, cleaner environment, and improved public health) and create employment opportunities for all residents within the project's area.

The Project is aligned to the InvestEU eligible area of Environment and Resources, in line with the Annex II of the InvestEU Regulation.

The Project concerns the co-financing of part of the 2025-2028 investment program of Vilniaus Vandenys UAB (VV), the water company for Vilnius and surrounding communities in Lithuania servicing a population of more than 600 000. The operation comprises the extension and rehabilitation of water supply and wastewater collection and treatment infrastructure. The investments in water supply will increase the population receiving clean water while those in the wastewater collection and treatment will increase the population connected to the wastewater services and reduce pollution of groundwater and surface water. All investments support the water utility to increase its energy efficiency. The Project contributes to the EU and EIB policy objectives of environmental protection and climate action, and will help mitigate market failures by financing infrastructure that generates positive environmental public health and climate externalities that are not fully reflected in the applicable water and wastewater tariffs in the service area. EIB provides a significant financial contribution by offering longer maturity and flexible customised terms compared to the conditions currently available on the market. Thus, EIB's involvement will have an impact on mobilising other financiers and signalling that the Project is sound and worth supporting, thereby facilitating the full financing and implementation of the Project.

The Project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

The project will contribute to ensure compliance with key EU directives in the water sector, notably the Drinking Water Directive (2020/2184/EU), the Urban Waste Water Treatment Directive (91/271/EEC) and the Water Framework Directive (2000/60/EC). Where and if applicable, the requirements of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, Strategic Environmental Assessment (SEA) Directive 2001/42/EC, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC will be respected.

The promoter shall ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.