KAUNAS HEATING CAPEX PROGRAMME

Promoter – Financial Intermediary

KAUNO ENERGIJA AB

Location

• Lithuania

Description

The project will finance the upgrade of the heating networks and heat generation assets located in Kaunas city and in several other smaller municipalities.

Objectives

The aim is to mantain and expand the district heating systems, decrease distribution losses and improve the reliability of heat supply, by modernising and expanding the grids, installing new renewable and gas-fired heat generation units or ugrading existing ones.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 55 million

Total cost (Approximate amount)

EUR 112 million

Environmental aspects

The project is an investment programme comprising numerous sub-operations from installation of biomass and gas-fired boilers to the modernisation and extension of district heating grids. Some sub-operations may fall under Annex II of the Environmental Impact Assessment (EIA) Directive thus requiring a review by the competent authorities at the planning/consent stage with due regard to the necessity for environmental and biodiversity impact and appropriate assessments. The environmental management capacity of the promoter and environmental aspects of the investments, including compliance with Industrial Emissions Directive 2010/75/EU and other EU legislative acts, will be appropriately assessed as part of the Bank's appraisal process.

Procurement

The promoter has to ensure that contracts for the implementation of the project have been/shall be tendered in accordance with the relevant applicable EU procurement legislation (Directives 2004/25/EU, and/or 2014/23/EU where applicable as well as the 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.

Status

Signed - 7/08/2020