EIB Provides €25 Million Loan to Lithuanian Municipal Water Company for Infrastructure Investment

EIB Provides €25 Million Loan to Lithuanian Municipal Water Company for Infrastructure Investment

(IN BRIEF) The European Investment Bank (EIB) has signed a €25 million loan agreement with Klaipėdos vanduo, the municipal water company in Klaipėda, Lithuania, to support its 2023-2026 investment program. The investment program aims to enhance water supply and wastewater management, including the construction, rehabilitation, and modernization of infrastructure, water treatment plants, and stormwater and sewer networks. These investments will improve water quality, reduce environmental pollution, enhance climate resilience, and generate positive environmental and public health outcomes for residents in the Klaipėda service area.

(PRESS RELEASE) LUXEMBOURG, 17-Nov-2023 — /EuropaWire/ — The European Investment Bank (EIB) has signed a €25 million loan agreement with Klaipėdos vanduo, the municipal water company in the Lithuanian city of Klaipėda, in support of its 2023-2026 investment programme. The investments aim to future-proof both the water supply and the handling of storm- and wastewater. Included in the financing package are the construction and rehabilitation of the water supply, stormwater and sewer networks, as well as the extension, rehabilitation and modernisation of water supply, wastewater and stormwater treatment plants and their connected infrastructure. Finally, the purchase of water meters, operation and maintenance equipment and machinery, and investments to improve ICT processes are also covered.

“The investments by Klaipėdos vanduo are both timely and necessary, especially as extreme weather events around the globe are increasing the risk of people including those in the European Union not having adequate access to water,” commented EIB Vice-President Thomas Östros. “The EIB is glad to continue its partnership with Klaipėdos vanduo, and to expand its support for the Lithuanian water sector with this financing. The way we manage and treat our water can have big implications, for our health first and foremost, but certainly also for the local economy.”

“Financing from the European Investment Bank (EIB) will help us to implement our set goals and also to meet environmental requirements. These are sustainable and long-term projects, and at the same time, an investment in the future,” said Klaipėdos vanduo CEO Benitas Jonikas. “We have no doubt that the investments will significantly contribute to the company’s efficiency and implementation of services. These investments will reduce risks of surface water flooding during rains, improve the quality of drinking water supplied to customers and reduce environmental pollution. This credit is a significant financial injection.”

The project aims to improve the reliability and affordability of the water supply and wastewater management services, which will have positive implications for people living in the Klaipėda service area. The investments will also support climate adaptation and mitigation and environmental sustainability, as they will enable Klaipėdos vanduo to generate renewable energy, reduce its energy consumption, better cope with more frequent and intense rains due to climate change, and reduce groundwater and surface water pollution. By financing water infrastructure — which generates positive environmental, public health and climate externalities — the project is set to improve the quality of life of residents.

Background information
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The European Investment Bank has financed over €1.6 billion worth of Lithuanian projects over the last five years.

Klaipėdos vanduo is the third largest water company in Lithuania. Its operational area covers Klaipėda municipality and Klaipėda district municipality in Klaipėda county, with around 185 000 customers.

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SOURCE: European Investment Bank