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The project will finance AB Klaipedos Energija's multi-year investment plan for the refurbishment and expansion of the district heating network, including heat generation facilities.
The aim is to enable the promoter to connect new users as well as to maintain or improve the reliability and quality standards of the district heating supply. The project is eligible under Article 309, point c) common interest (Sustainable Energy). It will contribute to the EIB’s lending priority goals on Climate Action and Environmental Sustainability, in line with the Bank's response measures to the European Commission’s REPowerEU objectives, as well as EIB’s Energy Lending Policy (ELP) and related themes on Securing the Enabling Infrastructure and Decarbonising Energy Supply. Furthermore, the project will address market failures, including increasing security of energy supply, displacing fossil fuel imports and reducing carbon and air pollution externalities. Additionally, being implemented in Cohesion Regions, the project aligns with Article 309 point (a) Projects for developing less-developed regions.
Some of the project's components could require the competent national authority to determine the need for an Environmental Impact Assessment (EIA). However, such components will have limited residual environmental impact and none of them are expected to meet the requirements for an EIA. Nevertheless, where and if applicable and based on a risk-based approach as defined in the EIB's Environmental and Social Standards Policy, the requirements of the relevant EU Directives will be checked during appraisal. Moreover, the EIB will contractually ensure that any EIA or nature conservation area impact assessment will be completed and will receive approval from the competent authorities prior to allocating the EIB's funds to the project scheme.
The promoter is a majority publicly owned undertaking that shall ensure that all contracts to implement the project will be tendered in accordance with the applicable EU procurement legislation, 2014/25/EU as well as Directive 92/13/EEC and/ or Directive 89/665/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. If and when applicable, procurement of main awarded contracts will be reviewed against applicable procurement requirements.