LITHUANIAN PASSENGER ROLLING STOCK

Promoter – Financial Intermediary

UAB LTG LINK

Location

• Lithuania

Description

The project involves the purchasing of 15 new electric rolling stock units (9 electric multiply units and 6 battery-electric multiply units) for passenger services in Lithuania.

Additionality and Impact

The project consists of the acquisition of electric multiple units and battery electric multiple units to be used under public service contract throughout Lithuania. The project is expected to generate economic and social benefits, improving safety, comfort and better access for persons with reduced mobility. The shift of passenger traffic to rail addresses market failures by reducing a number of transport externalities, such the harm to humans in terms of accidents and loss of life, or environmental externalities like noise, pollution and CO2 emissions. The EIB financing, structured along the lines of the best banking practice, will provide the Borrower with flexible conditions and will allow to attract other financiers to the Project. The Borrower will be able to diversify its funding sources and accelerate the full financing and implementation of the Project.

Objectives

The project is expected to increase the quality of rail services provided in Lithuania as well as promote travel by rail, reducing the use of private vehicles and the associated negative impacts on the local environment, road safety and GHG emissions and, thereby, contribute to the sustainable transport in line with EU objectives. The project is largely located in a convergence zone and by facilitating access promotes regional development.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 124 million

Total cost (Approximate amount)

EUR 248 million

Environmental aspects

The investments proposed under the project do not fall under either Annex I or Annex II of the Environmental Impact Assessment Directive (EIA) 2011/92/EU as amended by Directive 2014/52/EU as manufacturing and use of rail rolling stock is not included in either list. The need of EIA and/or assessment according to the Habitats Directive for associated facilities (e.g. maintenance workshops or depots) will be analysed during the appraisal. All else equal, the project is expected to have a positive environmental impact by helping the railways to maintain modal share in key sections of the passenger market that are most appropriately met by rail. In addition, the arrangements for the scrapping of the replaced stock will be checked during appraisal.

Procurement

The EIB will require UAB LTG Link to make sure contracts for the implementation of the project have been tendered according to the relevant applicable EU procurement legislation (Directive 2014/25/EU and Directive 92/13/EEC) as interpreted by the EU Court of Justice, to be published in the EU Official Journal, as and where required.

Status

Signed - 19/04/2024