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Lithuanian energy holding and EIB sign EUR 190 mln loan contract

BC, Vilnius, 05.12.2016.Print version
Lithuania's state energy group Lietuvos Energija (Lithuanian Energy) and European Investment Bank (EIB) on Monday signed a loan of 190 mln euros for the biomass and waste-fired cogeneration plant in Vilnius.

"Lithuania has a growing economy and an increased need for cleaner environment and efficient use of energy resources. (…) The mission of the EIB is to improve the quality of life for citizens, for example by helping to reduce energy bills while also cutting pollution. Here I think we are doing just that," EIB Vice-President Jan Vapaavuori said in a press release.

Lietuvos Energija's CEO Dalius Misiunas said the loan would secure funding under the most favorable conditions.


"EIB loan agreement is a crucial milestone in Vilnius CHP project. It will ensure that construction of the plant is going to be financed in accordance with the best terms. The fact that Lietuvos Energija is the first project to receive funding guaranteed under the Juncker Commission's Investment Plan for Europe of shows the strategic importance of Vilnius CHP plant," Misiunas said.


The EIB loan will be guaranteed by the European Fund for Strategic Investments, also known as the Juncker plan. Another 10% of the money will be earmarked by Lietuvos Energija. In September, the project received 150 mln euros in support from the European Commission.

Germany's Steinmuller Babcock Environment, Poland's construction group Budimex and Lithuania's Kauno Dujotieko Statyba (Kaunas Pipeline Construction) earlier this year were named the winning bidders and signed a contract worth 178.29 mln euros with Lietuvos Energija, while Poland's  Rafako   is to install the plant's biomass burning equipment and supplies infrastructure for 149.65 mln euros.


The Vilnius CHP plant should be built by the end of 2018.






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