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The operation consists of the financing of a multiyear investment programme concerning decarbonisation, modernisation and extension of the district heating networks in Vilnius city, including low-carbon heat generation and storage.
In line with the EU and national energy efficiency objectives, the project will improve the energy efficiency and ensure the security of supply of the district heating system in Vilnius. The investment programme will help to maintain and expand the district heating network as well as to install new low-carbon heat generation units.
The investment programme includes numerous sub-operations from installation of low carbon heat generation units (heat pumps, waste heat recovery units, biomass boiler houses) to the modernisation and extension of district heating grids. As such, it may include components that fall under Annex II of the Environmental Impact Assessment (EIA) Directive (2011/92/EU as amended by Directive 2014/52/EU), which requires the competent national authority to determine the need for an EIA. The environmental and social due diligence will focus on the Promoter's capacity to implement the program in line with the EU regulations. As the project includes the investment in biomass-fired boilers among other schemes, the assessment will concern also the sustainability of biomass.
As a public undertaking operating in the utility sector, the Promoter is subject to public procurement and its procurement procedures need to be in line with the relevant applicable EU procurement legislation (Directives 2014/23/EU, 2014/25/EU, where applicable, as well as Directive 92/13/EEC), as transposed in the national legislation, with publication of the tender and award notices in the Official Journal of the European Union, as and where required.