Lithuanian capital Vilnius to build nine schools and kindergartens with €168 million financing from EIB and NIB

• EIB and Nordic Investment Bank team up to provide €168 million in financing for Vilnius to build nine schools and kindergartens.
• New educational premises in Lithuanian capital to serve around 4 290 children by 2028.
• Facilities to be located in districts with biggest shortages of classroom space.

The Lithuanian capital Vilnius will build a total of nine schools and kindergartens with €168 million in financing from international lenders including the European Investment Bank (EIB). The EIB is providing €84 million and the Nordic Investment Bank (NIB) is matching the sum.  

The EIB and NIB financing takes the form of loans to the city through a special-purpose company named Vilnius Education Infrastructure. The project involves the construction of five kindergartens and four schools over the coming three years. The new premises will serve more than 4 000 children in Vilnius and have high energy-efficiency and environmental-sustainability standards.

“Strong education infrastructure is an investment in Lithuania’s future,” said EIB Vice‑President Karl Nehammer. “Our financing will help Vilnius deliver modern, climate‑friendly schools and kindergartens that make everyday life easier for families.”

By 2028, the new premises will serve around 4 290 children – equivalent to 3.5% of all young residents in Vilnius. The project will bring classrooms closer to home for 2 004 general-education students, 1,710 primary-school pupils and 576 preschool children.

“As cities grow, access to high-quality public infrastructure becomes increasingly important,” said André Küüsvek, President and CEO of NIB. “This investment will ensure that children in Vilnius can learn in modern, accessible environments that meet today’s educational standards, while helping the city respond to rapid demographic change and bringing schools closer to where families live.”

Vilnius Education Infrastructure was created by Vilnius Development Company, which is fully owned by the Vilnius City Municipality, to implement and finance the project. The initiative is the first of its scale in the region in which a municipally controlled company independently borrows from financial institutions to develop education infrastructure.

Vilnius Development Company is contributing around €9 million to the project, bringing the total financing to €177 million.

The kindergartens will be built in the districts of Jeruzalė, Šnipiškės, Verkiai, Pašilaičiai and Pilaitė, while new schools will open in Santariškės, Perkūnkiemis, Pavilnys and Kalnėnai. The largest site, in Kalnėnai, will combine a kindergarten and primary school and accommodate close to 1 000 children. These are the areas with the most acute shortages of school and kindergarten places.

Vilnius Development Company settled on the EIB-NIB financing package after evaluating and negotiating with six institutional and commercial banks.

”The financial terms negotiated with the selected banks are the most competitive,” said Vilnius Development Company Chief Executive Officer Laura Joffė. ”The long-term financing model created is financially sustainable and will bring long-term benefits to the city.”

All the new buildings will be designed through community‑engagement processes and architectural competitions and will ensure access for children with special needs. Outside school hours, facilities such as gyms and swimming pools will be available to local residents.

“As cities grow, access to high-quality public infrastructure becomes increasingly important,” said André Küüsvek, President and CEO of NIB. “This investment will ensure that children in Vilnius can learn in modern, accessible environments that meet today’s educational standards, while helping the city respond to rapid demographic change and bringing schools closer to where families live.”

Preparation for the project was supported by EIB Advisory, which helped Vilnius Development Company develop due diligence reports and a robust financial model used in discussions with financial institutions. The advisory assignment also included hands‑on training that enhanced the company’s capacity to manage such a large‑scale investment.

The advisory support will continue throughout 2026 with reviews of construction progress and monitoring reports to ensure timely delivery. EIB Advisory’s role became possible after Vilnius received the European Union’s “Climate Neutral and Smart Cities” label in May 2025.

Background information  

About EIB Group

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, the EIB finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and the bioeconomy, social infrastructure, the capital markets union and a stronger Europe in a more peaceful and prosperous world. 

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.   

High-quality, up-to-date photos of the EIB Group’s headquarters for media use are available here.

About NIB

NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.

About Vilnius Development Company

Vilnius Development Company is shaping the face of a modern Vilnius. As one of the city’s main implementers of public infrastructure projects, the company consistently strives for the highest standards in real estate design, development, and management.

The company provides territorial planning services for the City of Vilnius, manages and supervises the design and construction of municipally owned public-use facilities, administers buildings of Vilnius city educational institutions, and takes care of the City of Vilnius real estate assets.