Lithuania: EIB and Šiaulių bankas renew support for urban renewal
2 June 2016
Continuing their longstanding cooperation, AB Šiaulių bankas and the European Investment Bank (EIB) have signed two new agreements to support the refurbishment and modernisation of multi-apartment buildings in Lithuania with an additional EUR 110 million under the Jessica II fund, of which EUR 40 million is contributed from European Regional Development Fund and EUR 70 million is contributed by Šiaulių bankas.
The “Jessica II” fund, managed by the EIB, supports energy efficiency modernisation of residential buildings under the Lithuanian government's “Multi-apartment buildings Modernisation (Renovation) Programme”. This is the second agreement with Šiaulių bankas as the selected financial intermediary under the 2014-2020 EU regulations for Decentralised Financial Instruments. Under this agreement Šiaulių bankas will disburse EUR 80 million in preferential loans to home owners. Half of this amount (i.e. EUR 40 million) will be made available from Šiaulių bankas’ own funds.
Under the agreement signed last month, Šiaulių bankas made available an additional EUR 30 million of its own funds for housing renovation loans. Through the two new agreements, Šiaulių bankas will soon be able to finance the renovation of an additional 400 multi-apartment buildings in total.
Šiaulių bankas’ head of administration Vytautas Sinius said: “The successful partnership with the EIB and our longstanding commitment to financing renovation projects allows us to significantly contribute towards the country’s energy efficiency targets as well as the development of cities and businesses in all its regions. The renovation process involves the companies administrating the projects and the construction companies alike, a considerable number of which are small and medium-sized enterprises. These processes cultivate the prosperity of residents and businesses, which is one of the most important aims of Šiaulių bankas.”
EIB Vice-President Jan Vapaavuori, responsible for operations in the Baltic countries, added: “We are delighted to expand our partnership with Šiaulių bankas in implementing the “Jessica II” programme. Šiaulių bankas was crucial in ensuring the smooth continuation of the programme last year by providing their own funds. In this way it has helped to guarantee the programme’s ability to meet the ever growing demand for housing refurbishment in Lithuania. Urban renewal is high on the EIB’s agenda and the success of this programme is an example for other countries as well.”
Housing renovation, which is one of the priorities of the Ministry of Environment of the Republic of Lithuania, has gained traction across the whole country. According to the Housing Energy Efficiency Agency, currently 784 renovation projects are undergoing works, for a combined worth of circa EUR 245 million. Most active in the renovation process are the regions of Ignalina, Druskininkai, Molėtai, Anykščiai, Jonava and Kelmė.
Lithuanian Minister of Environment Kęstutis Trečiokas said: “The vastly increased scale of the multi-apartment building renovation in the country, which was not anticipated even by the biggest optimists, demands to pool our every effort so that our old houses would be reborn for a new life – would become comfortable, beautiful and economical in terms of energy efficiency. However, finding the necessary financial resources is not so simple and thus all additional funds are especially important. This is why we are so glad with the recently signed agreement between the EIB and Šiaulių bankas. “
Continuing a longstanding cooperation, AB Šiaulių bankas and the EIB have signed a EUR 68 million operational agreement under the Jessica II fund which will support the refurbishment and modernisation of around 350 multi-apartment buildings in Lithuania. In addition, Šiaulių bankas agreed to provide EUR 30 million of own funds for the refurbishment of a further 125 multi-apartment buildings.